July 29 (Reuters) - Gold prices gained on Monday ahead of
this week's U.S. Federal Reserve monetary policy meeting, which
is expected to lead to a cut in U.S. interest rates.
FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $1,423.49 per ounce, as
of 0121 GMT.
* U.S. gold futures GCv1 gained 0.3% to $1,423.20 an
ounce.
* Market participants are now awaiting the U.S. central
bank's July 30-31 monetary policy meeting, where it is expected
to trim its interest rate by at least 25 basis points.
* Interest rate futures are fully priced for a quarter-point
rate cut from the Fed on Wednesday, with only a small chance of
a half-point move. FEDWATCH
* U.S. economic growth slowed less than expected in the
second quarter according to a Commerce Department report on
Friday, making the Fed less likely to cut rates by 50 basis
points given the economic improvement. * Better than expected U.S. data lifted the dollar .DXY to
a two-month high versus a basket of currencies on Friday, and
held firm near that level on Monday. USD/
* U.S. and Chinese trade talks are shifting to Shanghai this
week, as negotiators from both countries meet for their first
in-person talks since a truce at G20 last month. Expectations
are low for a breakthrough. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.14% to 818.14
tonnes on Friday from 819.32 tonnes on Thursday. GOL/ETF
* Hedge funds and money managers reduced their bullish
stance in COMEX gold in the week to July 23, the U.S. Commodity
Futures Trading Commission (CFTC) said in a report on Friday.
* Consumers in leading Asian hubs sold back physical gold
last week looking for profits, switching over to cheaper silver
as the preferred investment. GOL/AS
* An emergency meeting with parties to Iran's 2015 nuclear
deal was "constructive" but there are unresolved issues, and
Iran will continue to reduce its nuclear commitments if
Europeans fail to salvage the pact, an Iranian official said on
Sunday. AHEAD(GMT)
* 0600 UK Nationwide house price m/m July
* 0600 UK Nationwide house price y/y July
* -- Japan Bank of Japan holds Monetary Policy Meeting