PRECIOUS-Gold steady, spotlight on Fed rate-hike meeting outcome

Kitco Media
By Reuters
Published:
Updated:
Reuters
Jan 30 (Reuters) - Gold prices held steady in early Asian hours on Monday, with investors awaiting the U.S. Federal Reserve's rate-hike verdict due this week. FUNDAMENTALS
* Spot gold was little changed at $1,928.32 per ounce, as of 0013 GMT. U.S. gold futures were down 0.1% at $1,928.70.
* Traders are eyeing the Fed's policy meeting scheduled on Jan. 31-Feb. 1. The market broadly expects the U.S. central bank to scale back rate hikes to 25 basis points (bps) from 50 bps announced in December.
* Gold, which pays no interest, tends to benefit when interest rates are low as it reduces the opportunity cost of holding bullion.
* On Friday, data showed that U.S. consumer spending fell in December, while inflation continued to subside, which could give the Fed room to further slow the pace of its rate hikes.
* Physical gold dealers in India offered the steepest discounts in 10 months last week to lure customers, as a sharp rally in local prices squeezed demand in the world's second-biggest bullion consumer.
* Spot silver gained 0.3% to $23.63 per ounce, platinum rose 0.2% to $1,014.08, and palladium climbed 0.8% to $1,631.64. DATA/EVENTS (GMT) 0900 Germany GDP Flash QQ SA Q4 0900 Germany GDP Flash YY NSA Q4 (Reporting by Ashitha Shivaprasad in Bengaluru; editing by Uttaresh.V)

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