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PRECIOUS-Gold treads water near $1,160, Fed meeting in focus

Published 2015-10-26, 08:42 p/m
© Reuters. PRECIOUS-Gold treads water near $1,160, Fed meeting in focus
XAU/USD
-

SINGAPORE, Oct 27 (Reuters) - Gold steadied near $1,160 an
ounce on Tuesday as investors kept to the sidelines ahead of a
Federal Reserve policy meeting that kicks off later in the
session, waiting for clues on the timing of a U.S. rate hike.

FUNDAMENTALS
* Spot gold XAU= was steady at $1,162.96 an ounce by 0027
GMT. The metal had fallen to its lowest in nearly two weeks at
$1,158.77 on Friday, but has since firmed as the dollar gave up
some recent gains.
* The greenback fell Monday against major currencies on a
decline in U.S. bond yields and worries about the U.S. economy
after new home sales dropped steeply in September.
* New U.S. single-family home sales declined to near a
one-year low in September after two straight months of gains,
but a jump in prices suggested that housing remained on solid
ground. urn:newsml:reuters.com:*:nL1N12Q128
* The data comes ahead of the Fed's two-day policy meet
beginning on Tuesday. The U.S. central bank is widely expected
to leave rates unchanged but investors are increasingly
sceptical that it will raise rates before the end of the year.
The Fed holds one more policy meet this year in December.
* Fed policymakers have been worried about weakening global
growth and a relatively strong dollar disrupting U.S. economic
growth, but they have been sending out mixed messages regarding
the timing of a rate hike, the first in nearly a decade.
* Fed Chair Janet Yellen, praised as an adept listener and
consensus builder, may need to adopt a stronger tone at this
week's policy meeting if she expects to keep a December interest
rate rise in play. Yellen's inclusive style has been tested
recently by two fellow governors who publicly appeared to
disagree with her view. urn:newsml:reuters.com:*:nL1N12N2MZ
* Russia and Kazakhstan raised their gold holdings for a
seventh straight month in September, while Turkey and Belarus
cut their reserves, according to International Monetary Fund
data. urn:newsml:reuters.com:*:nL1N12Q2HL
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* Global equity markets slipped on Monday, pausing after a
four-week rally ahead of policy announcements from central banks
in the United States and Japan. MKTS/GLOB

DATA AHEAD (GMT)
1230 U.S. Durable goods orders Sep
1300 U.S. S&P/Case-Shiller housing index Aug
1400 U.S. Consumer confidence Oct
Federal Open Market Committee starts two-day policy meeting

PRICES AT 0027 GMT
Metal Last Change Pct chg

Spot gold 1162.96 0.16 0.01
Spot silver 15.83 0 0
Spot platinum 991.99 -1.51 -0.15
Spot palladium 678.5 -0.5 -0.07
Comex gold 1163.2 -3 -0.26
Comex silver 15.85 -0.055 -0.35

COMEX gold and silver contracts show the
most active months

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