Investing.com | Sep 17, 2019 16:03
Investing.com -- Gold prices stayed stuck in tight ranges on Tuesday as the market settled down to await the outcome of the Federal Reserve’s two-day policy meeting, which kicked off earlier.
The yellow metal has failed to make noticeable gains since the weekend attacks on Saudi Arabian oil installations, with the latest U.S. economic data chipping away at confidence that the Fed will deliver a 25 basis point cut. While the implied chance of a cut was at over 90% last week, it’s fallen to less than 65% currently, according to Investing.com’s Fed rate monitor tool.
An unexpected rebound in industrial production and manufacturing output in August, data for which were released earlier, did nothing to strengthen the case for lower rates. Nor did a rise in the National Association of Home Builders housing market index, which hit its highest level since October.
In addition, there has been no clear sign that the attacks on Saudi Arabia will trigger a broader conflict with Iran, which would demand higher premiums for all haven assets.
Saudi Arabia has so far not endorsed U.S. claims that Iran was directly responsible for the attacks, and comments from President Donald Trump indicated that he was content to let the kingdom work out an alternative response to military escalation. Trump told reporters on Monday he would “sit down with the Saudis and work something out.”
Bullion continued to receive some support from falling bond yields after a Reuters report suggested that Saudi Arabia could restore its oil output to desired level within two to three weeks, averting the risk of a sustained sharp increase in crude prices that could push inflation higher.
Copper Futures inched down 0.5% to $2.63 a pound.
Written By: Investing.com
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