Gold Price Steady Ahead Of Next Week's Fed Meeting

New York (Sept 20)  Gold prices held mostly steady on Thursday as the dollar hovered near a seven-week low against a basket of major currencies heading into the Federal Reserve meeting next week.

The weakness in dollar came after reports that the US and Canada are unlikely to reach an agreement on NAFTA this week.

Spot gold was up 0.1% at USD1,203.25 an ounce after rising half a % in the previous session. US gold futures were marginally lower at USD1,207.80.

Investors looked beyond trade war escalation after Chinese Premier Li Keqiang said Beijing would not devalue its currency to prop up its export market.

Despite US President Donald Trump lowering expectations of a new round of trade negotiations with China, observers suggest that a significant escalation in the U.S-China trade war was unlikely before the end of the year.

Meanwhile, the Federal Reserve appears to be on track to hike rates by a quarter of a point next week, but there is uncertainty on how officials view the future.

AllianceNews