Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold eases as market prepares for Fed meeting outcome

07/26/2021 | 10:37am EDT

* Could slip to $1,750-$1,770 on Fed plans, analyst says

* U.S. dollar, treasury yields lower

* China slowdown could hit silver consumption - analyst

July 26 (Reuters) - Gold edged lower on Monday as investors turned cautious in the run-up to a Federal Reserve policy meeting, overshadowing some support from a weaker dollar.

Spot gold was down 0.2% at $1,798.41 per ounce by 13:56 p.m. EDT, while U.S. gold futures settled 0.1% lower at $1,799.20.

The U.S. central bank will begin its two-day policy meeting on Tuesday.

"The concern now is that we will get the first hints of not necessarily a rate increase but what kind of reductions the Fed envisions to its balance sheet, and that could be a trigger for rates to move higher," said Edward Meir, analyst with ED&F Man Capital Markets.

Meir, however, said that was unlikely to drive a sustained fall in gold, with the metal drawing support from a dovish European Central Bank, a currently accommodative Fed, large fiscal stimulus and higher inflation.

Both the ECB and Fed have suggested they will keep monetary policy accommodative for some time.

Yet Han Tan, market analyst at Exinity Group, said that if the policy-setting Federal Open Market Committee provides more details about tapering plans, gold could test the June lows of $1,750-$1,770.

Bullion's dip came despite a weaker dollar and a slight dip in benchmark U.S. Treasury yields.

Elsewhere, silver rose 0.2% to $25.22 an ounce.

"You might have to wait for a bit for a breakout in silver, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

"Silver relies a lot on infrastructure and the slowdown in China might impact the technology that silver demands in order to be consumed."

Floods in central China, especially in the industrial and transport hub city of Zhengzhou, have raised concerns over damage to the region's infrastructure.

Among other metals, platinum gained 0.8% to $1,070.11 an ounce and palladium was slightly up at $2,672.98. (Reporting by Nakul Iyer, Arundhati Sarkar and Bharat Govind Gautam in Bengaluru; Editing by Paul Simao and Pravin Char)


ę Reuters 2021
Latest news "Economy & Forex"
05:46aLondon Stocks Fall as Investors Turn Cautious; Oil Stocks Rise
DJ
05:43aIndia's Silicon Valley state seeks to ban online gaming, worrying booming industry
RE
05:42aUK in talks with Westinghouse over new nuclear power plant in Wales - The Times
RE
05:42aDaimler expands European battery network with 33% stake in ACC venture
RE
05:38aHuawei 2021 smartphone revenue to drop by at least $30-40 billion - rotating chairman
RE
05:36aMalaysia's central bank to launch alternative reference rate
RE
05:35aChina scrambles to fix power crunch, tame runaway raw material markets
RE
05:34aIndia's Shilpa Medicare to produce Cadila's COVID-19 shot
RE
05:32aEvergrande's billionaire boss exudes calm amid crisis
RE
05:31aChina central bank vows crackdown on cryptocurrency trading
RE
Latest news "Economy & Forex"