Gold Prices Mixed In Cautious Trade

New York (Jan 28)  Gold prices were mixed in cautious trade on Monday after climbing to a more than seven-month high on Friday on expectations of dovish hints from the US central bank.

The Federal Reserve is widely expected to leave interest rates unchanged during its two-day policy meeting starting Tuesday.

Spot gold slid 0.15% to USD1,301.42 per ounce while US gold futures were up 0.18% at USD1,300.45 per ounce.

After four rate increases last year, Fed officials are now unanimously hammering a single message that they would be "patient" in raising rates.

Elsewhere, ECB President Mario Draghi warned last week that the near-term growth momentum is likely to be weaker than previously expected due to the fall-out from factors ranging from China's slowdown to Brexit.

He also referred to "downside" risks, helping fuel market speculation that the bank will delay any rate hike.

Meanwhile, the profits of Chinese industrial companies shrank for a second straight month in December, a government report showed today, adding to the pressure on policymakers to support growth.

Manufacturing companies' profits declined an annual 1.9% last month as both factory inflation and economic growth slowed amid a protracted US-Sino trade war.

US-China trade talks will resume in Washington this week, with markets hoping for a thaw in the escalating tensions.

AllianceNews