Wednesday, October 24, 2018

Gold still on the downside as markets await Fed meetingGold still on the downside as markets await Fed meeting – Gold prices remained lower on Tuesday, as the U.S. dollar strengthened ahead of the Federal Reserve’s policy meeting and as a decline in Chinese business activity raised questions about demand prospects.

Comex gold futures were down 0.32% or about $4.16 at $1,273.6 a troy ounce by 09:30 a.m. ET (13:30 GMT).

Investors were looking ahead to the Fed’s upcoming monetary policy statement on Wednesday for fresh indications on the path of rate hikes this year and Friday’s U.S. jobs report for October.

Trump is also expected to name his pick for the next head of the U.S. central bank on Thursday. Recent reports have indicated that Trump is likely to appoint Fed Governor Jerome Powell, who is viewed as more dovish than other candidates.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 94.48.

However, the dollar’s gains were expected to remain limited after President Donald Trump’s former campaign manager Paul Manafort was charged with money laundering by federal investigators.

Special Counsel Robert Mueller has also been investigating whether Trump obstructed justice in his firing of FBI Director James Comey.

Investors fear that the charges may divert Trump’s attention from his legislative agenda, which includes tax reforms.

Elsewhere, China earlier reported the official manufacturing PMI for October at 51.6, compared with a level of 52 expected, while its non-manufacturing survey dropped to 54.3 from 55.4 in the previous month, also showing weaker activity in the world’s second largest economy.

Elsewhere on the Comex, silver futures slid 0.41% to $16.78 a troy ounce.

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