Gold holds steady as focus turns to Fed meeting

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Gold holds steady as focus turns to Fed meeting
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Yellow metal little changed ahead of US rate-setting meeting and tariff deadline on Chinese goods

A commemorative gold ornament for the upcoming Year of the Rat is on display at a jewellery shop on December 10 2019 in Suzhou, China. Picture: VCG VIA GETTY IMAGES/WANG JIANKANG

The US and China have adopted a reconciliatory tone, with China saying it hoped to make a deal as soon as possible. President Donald Trump has said he is working with Beijing on an agreement ahead of new tariffs on $156bn worth of Chinese imports on December 15. The effect of a prolonged trade war on economic growth has led the US Federal Reserve to cut rates three times this year, sparking demand for the non-yielding bullion. Gold is now on track for its best year in almost a decade.

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