Gold prices steady near record high ahead of Fed rate decision

Gold prices held steady on Monday, hovering near a record high, as investors focused on the U.S. Federal Reserve meeting this week, where policymakers are expected to announce a rate cut following consecutive weak labor market reports.

FUNDAMENTALS

* Spot gold held its ground at $3,636.73 per ounce, as of 0031 GMT. Bullion hit a record high of $3,673.95 on Tuesday.

* U.S. gold futures for December delivery were down 0.2% at $3,673.60.

* The U.S. dollar index edged 0.1% higher, making gold more expensive for overseas buyers. * Data from the University of Michigan on Friday showed U.S. consumer sentiment declined for the second consecutive month in September, as concerns over business conditions, the labor market, and inflation weighed on outlook.
* Inflation data released last Thursday came in slightly above expectations, but market participants largely believe this will not deter the U.S. Fed from a widely anticipated quarter-percentage-point rate cut on Wednesday.
* The Fed’s policy meeting this week comes amid challenges, including a legal dispute over its leadership and efforts to confirm U.S. President Donald Trump’s nominee to the Board of Governors. Investors will closely monitor the Fed’s stance regarding labor market concerns and broader economic risks.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.32% to 974.80 tons on Friday from 977.95 tons on Thursday.

* Speculators reduced their net long positions in gold by 2,445 contracts to 166,417 in the week ended September 9.

* U.S. and Chinese officials concluded a first day of talks in Madrid on Sunday on their strained trade ties, amid Washington’s demands that its allies place tariffs on imports from China over its purchases of Russian oil.

* Meanwhile, Trump said on Sunday that he is willing to impose sanctions on Russia but Europe has to act in a way that is commensurate with the United States.

* Elsewhere, spot silver was steady at $42.18 per ounce, platinum rose 0.8% at $1,402.25 and palladium was down 0.3% at $1,193.75.

DATA/EVENTS (GMT)

0200 China Urban Investment (YTD)YY August

0200 China Retail Sales YY August

0200 China Unemployment Rate Urban Area August

0900 EU Total Trade Balance SA July

1000 EU Reserve Assets Total August.