2019.10.2810:55:00UTC+00Gold Holds Steady Ahead Of Fed Meeting

Gold prices held steady on Monday after rising nearly 1 percent on the previous session on hopes for a rate cut at the upcoming FOMC meeting.

Spot gold edged up 0.1 percent to $1,505.62 per ounce while U.S. gold futures were up 0.2 percent at $1,508.05 per ounce.

Investors await a U.S. Federal Reserve rate decision later this week, with traders pricing for a 25 bps rate cut amid uncertainties and economic slowdown caused by U.S.-China trade war.

The upside remained capped by modest signs of progress in U.S.-China trade talks and the EU's announcement that it will accept the U.K.'s request for a Brexit flextension until 31 January 2020.

The Office of the U.S. Trade Representative said the countries have "made headway on specific issues and the two sides are close to finalizing some sections of the agreement."

On Saturday, China's Commerce Ministry said both sides are "close to finalizing" some parts of a trade agreement after high-level telephone discussions on Friday.

U.S. President Donald Trump said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile.

After a meeting between the 27 European ambassadors in Brussels, European Council President Donald Tusk announced that EU leaders have agreed to give the U.K. three more months to exit the bloc. The decision is expected to be formalized through a written procedure.