July 30 (Reuters) - 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.
FUNDAMENTALS
* Spot gold XAU= fell 0.3% to $1,422.81 per ounce at 0128
GMT.
* U.S. gold futures GCv1 gained 0.2% to $1,422.50 an
ounce.
* The dollar .DXY was up 0.1%, hovering near a two-month
high hit in the previous session, making gold expensive for
holder of other currencies. USD/
* 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's first rate cut in a decade.
* Japan's 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's central bank could change its
forward guidance to reassure traders that rates will remain low.
* The U.S.-China trade negotiations are due to begin in
Shanghai on Tuesday, although expectations for progress during
the two-day meeting are low. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.83% to 824.89
tonnes on Monday from 818.14 tonnes on Friday. GOL/ETF
* Asian stocks edged up on Tuesday as equity investors
prepared for an expected U.S. interest rate cut this week.
MKTS/GLOB
* There is a growing risk of a no-deal Brexit where Britain
exits the European Union without a trade deal in place. There is
also a chance that new Prime Minister Johnson will call an early
election. AHEAD(GMT)
* 1230 US Consumption, adjusted June
* 1400 US Consumer Confidence July
* -- Japan JP BOJ Rate Decision
* -- US U.S. Federal Reserve's Federal Open Market
Committee starts its two-day meeting on
interest rates (to July 31)