Gold prices edge up on tepid dollar ahead of Fed meeting

Tuesday,   19-Mar-2019   09:06 AM (IST)

Gold prices rose for a third consecutive session on Tuesday as the dollar weakened on expectations that the U.S. Federal Reserve will maintain a dovish tone at its monetary policy meeting this week. Spot gold was up 0.1 percent at $1,304.91 per ounce as of 0058 GMT. U.S. gold futures rose about 0.3 percent to $1,304.70 an ounce. Spot palladium dipped 0.1 percent to $1,582 an ounce, after registering its highest on record at $1,585.59 in the previous session on sustained supply tightness. The dollar, which eased marginally against major currencies, traded close to a two-week low posted in the previous session. Traders currently expect there will be no U.S. rate hikes this year, and are even building in bets for a rate cut in 2020. Federal Reserve Chairman Jerome Powell will speak at a news conference on Wednesday. Prime Minister Theresa May’s Brexit plans were thrown into further turmoil on Monday when the speaker of parliament ruled that she could not put her divorce deal to a new vote unless it was re-submitted in a fundamentally different form. European Union leaders could hold off making a final decision on any Brexit delay when they meet in Brussels later this week, senior diplomats in the bloc said, depending on what exactly British Prime Minister Theresa May asks them for.