Gold steady ahead of Fed meet, awaits clarity on fresh U.S. tariffs

Gold prices held steady on Tuesday, ahead of a policy meeting by the U.S. central bank, while investors awaited clarity on whether a next round of U.S. tariffs on Chinese imports will take effect this weekend.

FUNDAMENTALS
Spot gold was down 0.1% to $1,461.05 per ounce by 0156 GMT. U.S. gold futures was flat at $1,465.40.

Palladium was unchanged at $1,881.34 an ounce. The supply-squeezed autocatalyst metal climbed to an all-time high of $1,898.50 in the previous session.

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China said on Monday that it hoped to make a trade deal with the United States as soon as possible, while President Donald Trump said Washington is doing well in hammering out a trade agreement with Beijing, ahead of possible new tariffs on $156 billion worth of Chinese imports.

The dollar and yen held the safe-haven high ground on Tuesday, with investors on edge ahead of a looming tariff deadline, the UK election and upcoming central bank meetings in Europe and the United States.

The U.S. Federal Reserve`s two-day policy meeting starts later in the day. The central bank is widely expected keep interest rates on hold in the range of 1.50% to 1.75%.

Investors were also looking forward to New European Central Bank boss Christine Lagarde`s first policy meeting on Thursday.

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U.S. consumers` inflation expectations rose slightly in November, bringing the outlook for near and medium-term inflation up from a five-year low in a New York Federal Reserve survey.

Chinese soy importers bought at least five bulk cargo shipments of U.S. soybeans, after Beijing offered the buyers at least 1 million tonnes in new tariff waivers, U.S. exporters said.

Goldman Sachs has kept its 3, 6 and 12 month forecast for gold at $1,600 per troy ounces, saying investment demand will be supported by fears of recession and political uncertainty.

Silver rose 0.1% to $16.61 per ounce, while platinum gained 0.2% to $896.11.