Gold holds steady ahead of Fed policy statement
FUNDAMENTALS
* Spot gold was steady at $3,329.19 per ounce as of 0020 GMT. U.S. gold futures rose 0.1% to $3,327.70.
* U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of talks in Stockholm.
* However, U.S. officials said it was up to President Donald Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures.
* Meanwhile, the U.S. dollar index held steady after hitting a more than one-month high on Tuesday, making greenback-priced bullion more expensive.
* Investors turned their focus to the Fed's policy to gauge its future rate cut path, following the central bank's two-day meeting, during which it is widely expected to keep rates steady, despite Trump's constant call to lower them.
* The U.S. trade deficit in goods narrowed to its lowest in nearly two years in June as imports fell sharply, cementing economists' expectations that trade likely accounted for much of an anticipated rebound in economic growth in the second quarter.
* The International Monetary Fund slightly raised its global growth forecasts for 2025 and 2026 on Tuesday, citing stronger-than-expected buys ahead of a jump in U.S. tariffs on August 1 and a drop in the effective tariff rate to 17.3% from 24.4%.
* Meanwhile, on Tuesday, Trump threatened tariffs and other measures on Russia "10 days from today" if Moscow showed no progress toward ending its more than three-year-long war in Ukraine.
* Spot silver held steady at $38.20 per ounce, platinum fell 0.4% to $1,389.20 and palladium remain unchanged at $1,258.75.
DATA/EVENTS (GMT) 0530 France GDP preliminary QQ Q2 0800 Germany GDP flash QQ SA, YY NSA Q2 0900 EU GDP flash preliminary QQ, YY Q2 0900 EU consumer confidence final July 1230 U.S. GDP advance Q2 (Reporting by Anmol Choubey in Bengaluru; Editing by Sumana Nandy)
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