Gold bars. Picture: BLOOMBERG
Gold bars. Picture: BLOOMBERG

Bengaluru — Gold prices were little changed on Wednesday as the dollar held steady ahead of a meeting between the US and European commission presidents to discuss trade-related issues.

Spot gold was nearly unchanged at $1,223.97/oz at 3.33am GMT.

US gold futures for August delivery were 0.1% lower at $1,223.90/oz. The dollar index, which measures the greenback against a basket of six major currencies, was little changed at 94.652.

"It is extremely quiet and everyone is staying on the sidelines…. I think the market is still waiting for information on the trade war," said Dick Poon, general manager at Heraeus Metals Hong Kong.

A meeting between US President Donald Trump and European commission president Jean-Claude Juncker is set to be held in Washington on Wednesday, where the two leaders will discuss trade-related issues.

This come after the US imposed tariffs on EU steel and aluminium in June and Trump threatened to extend them to EU cars and car parts.

Meanwhile, investors are also awaiting the second-quarter US economic growth data which is due on Friday, where they expect growth to top current forecasts of 4.1%.

"We still remain somewhat cautious on the precious metals group. In addition to poor-looking technicals, the market is vulnerable to the dollar resuming its upswing. This could happen as easily as Friday when the GDP numbers come out," INTL FCStone analyst Edward Meir said in a note.

"Anything meaningfully north of 4.2% could lead to yet another push-up in the greenback and pressure gold lower as investors coalesce around perceptions of a Fed intent on raising rates as expeditiously as it can."

A now-robust US economy will soon lose momentum on rising interest rates and escalating trade disputes, according to economists polled by Reuters, who nonetheless gave just a one-in-three chance of a recession over the next two years.

Among other precious metals, silver was down 0.1% at $15.42/oz.

Platinum was 0.3% higher at $830.99/oz, while palladium fell 0.5% to $910/oz.

Reuters