October 30, 2019 / 1:50 AM / 22 days ago

PRECIOUS-Gold steady on potential trade delay; focus on Fed rate decision

Oct 30 (Reuters) - Gold prices held steady on Wednesday on prospects of a delay in the U.S.-China trade pact, while cautious investors awaited the Federal Reserve’s decision on interest rates later in the day.

FUNDAMENTALS

* Spot gold was steady at $1,488.23 per ounce at 0114 GMT. U.S. gold futures were unchanged at $1,490.40 per ounce.

* Investors expect the U.S. Federal Reserve to cut interest rates by 0.25 percentage point for the third time this year later in the day, with Federal fund futures implying that traders see a 94% chance for a 25 basis point rate cut.

* Meanwhile, an interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, a U.S. administration official said on Tuesday.

* Both economies have imposed a series of tariffs on each other for more than a year, stirring global recessionary fears.

* Gold, which is seen as a safe investment times of political and financial uncertainty, has climbed more than 16% so far this year.

* U.S. consumer confidence fell for a third straight month in October amid concerns about the short-term outlook for business conditions and job prospects, but remained at levels consistent with continued growth in consumer spending.

* Asian shares were in tight ranges early, as the Fed’s rate cut prospect was offset by worries that the Sino-U.S. first-stage trade deal could be delayed.

* Britain will hold its first December election in almost a century after Prime Minister Boris Johnson won approval from parliament on Tuesday for an early ballot aimed at breaking the Brexit deadlock.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 917.31 tonnes on Tuesday from 918.48 tonnes on Monday.

DATA/EVENTS (GMT) 0030 Australia CPI QQ, YY Q3 0030 Australia RBA Weighted Medn CPI QQ, YY Q3 0030 Australia RBA Trimmed Mean CPI QQ, YY Q3 0630 France GDP Preliminary QQ Q3 0855 Germany Unemployment Chg, Rate SA Oct 1000 EU Consumer Confid. Final Oct 1100 Germany CPI Prelim YY, HICP Prelim YY Oct 1230 US GDP Advance Q3 1800 US Federal Reserve’s Federal Open Market Committee announces its decision on interest rates followed by statement. Bank of Japan holds Monetary Policy Meeting.

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