Gold slips on US-China trade talk hopes; traders eye Fed policy

– Gold costs fell on Wednesday as optimism over potential U.S.-China trade talks weakened demand for safe-haven belongings, whereas buyers braced for the Federal Reserve’s policy assembly later within the day.

FUNDAMENTALS

* Spot gold misplaced 1.3% to $3,386.36 an oz. as of 0024 GMT. The metallic had risen practically 3% within the earlier session.

* U.S. gold futures fell 0.8% to $3,395.20.

* U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s prime financial official in Switzerland this week, U.S. officers stated, in what may very well be step one towards resolving a trade battle disrupting the worldwide economic system.

* The U.S. and China imposed tit-for-tat tariffs on one another final month, triggering a trade battle that fuelled fears of a world recession. * On Tuesday, U.S. President Donald Trump stated he and prime administration officers will assessment potential trade offers over the following two weeks to determine which of them to simply accept. * The market’s focus can be on the Federal Open Market Committee (FOMC) assembly later within the day, the place the U.S. central financial institution is predicted to carry rates of interest regular. The Fed has held its policy fee within the 4.25%-4.50% vary since final December.

* Fed Chair Jerome Powell’s remarks are awaited for clues into the potential timing of future rate of interest cuts.

* Gold, historically seen as a hedge in opposition to financial and political uncertainties, thrives in a low-interest fee surroundings.

* Spot silver eased 0.6% to $33.03 an oz., platinum fell 0.4% to $980.95 and palladium misplaced 0.5% to $969.75.