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Gold prices rose on Tuesday in Asia ahead of an expected rate cut by the U.S. Federal Reserve.August delivery on thedivision of the New York Mercantile Exchange rose 0.3% to $1,424.30 by 12:45 AM ET (04:45 GMT).Markets widely expect the Fed to cut rates by at least 25 basis points this week. Some traders previously speculated the central bank to slash rates by 50 basis points, but chances of that happening dampened after the U.S.’ second-quarter GDP came better than expected.
More important than what happens on Wednesday is what the market expects of the Fed in follow-through action in September and beyond,” Investing.com senior commodity analyst Barani Krishnan said. “Here’s where the real disappointment could be for gold longs, as the Fed might not be as dovish as many expect.”Separately, the Bank of Japan kept its rates unchanged today as expected. The Bank of England is also expected to meet later this week.
Concerns surronding Brexit were in focus after the British government said overnight that it assumed a no-deal departure would happen as the “stubborn” EU refused to renegotiate the terms of the draft agreement made by former PM Theresa May.Meanwhile, traders also await the outcome of the meetings between officials from the U.S. and China that reportedly began this week in Shanghai.