BULLION – Bullion counter may trade on mixed path. Gold prices eased on Tuesday as the dollar held near multi-month highs, while investors awaited outcome of a two-day U.S. Federal Reserve policy meeting, where the central bank is widely expected to reduce interest rates. The dollar was up 0.1%, hovering near a two-month high hit in the previous session, making gold expensive for holder of other currencies. The U.S. Fed begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank first rate cut in a decade. Japan central bank is expected to keep monetary policy on hold at a meeting ending later on Tuesday, but some investors say there is a chance Japan central bank could change its forward guidance to reassure traders that rates will remain low.
ENERGY– Crude oil may trade on positive path as oil prices extended overnight gains on Tuesday amid widespread expectations the U.S. Federal Reserve will cut interest rates for the first time in more than a decade this week. U.S. central bankers will begin their twoday meeting later in the day and are expected to lower borrowing costs for the first time since the depths of the financial crisis more than a decade ago. U.S. President Donald Trump said a small rate cut is not enough. Economic growth in the United States slowed less than expected in the second quarter, strengthening the outlook for oil consumption but, elsewhere, disappointing economic data has increased concerns about slower growth. Supply risks are still a concern as tensions remained high around the Strait of Hormuz, through which about a fifth of the world oil passes. Tensions spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf this month in apparent retaliation for the capture of an Iranian tanker by British forces near Gibraltar.
BASE METAL – Base metals may trade on sideways path. Industrial metals traded in tight ranges on Tuesday as investors exercised caution ahead of planned U.S.-China trade talks and a two-day U.S. Federal Reserve meeting starting later today. Meanwhile, U.S. and Chinese officials are due to meet on Tuesday in Shanghai for talks on a year-long trade dispute that has weighed on global economic growth and demand for industrial metals. Expectations for progress at the U.S.-China trade meeting are low, so officials and businesses are hoping Washington and Beijing can at least detail commitments for goodwill gestures and clear the path for future negotiations. Steel futures in China slumped to their lowest in five weeks on Monday ahead of the lifting of intensified production restrictions in the nation’s top steelmaking city of Tangshan.
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