Gold edges up on equity blip, market eyes data, Fed

Gold edged up on Tuesday as Asian shares fell ahead of the release of a raft of economic data and the US Federal Reserve's two-day meeting which will decide the trajectory of interest rates.

FUNDAMENTALS

Spot gold was up 0.2 per cent at $1,281.95 per ounce at 0123 GMT.


US gold futures were up 0.2 per cent at $1,283.90 an ounce.

Shares in Asia fell on Tuesday morning despite another record high close for the S&P 500, as investors look to a US Federal Reserve statement due Wednesday for signs the central bank will continue a "patient" approach to interest rate policy.

Growth in China's factory activity unexpectedly slowed in April, an official survey showed on Tuesday, suggesting the economy is still struggling to regain traction despite a flurry of support measures.

The market is now eyeing a bevy of economic data from the euro zone and the Fed's statement on Wednesday.

The Federal Reserve is expected to hold interest rates steady as policymakers balance recent stronger-than-expected US economic growth against sluggish inflation.

China's net gold imports via main conduit Hong Kong in March rose 9.8 per cent from the previous month, Hong Kong government data showed on Monday.

Australia-based Newcrest Mining Ltd's gold production in the third quarter came in about 5 per cent lower than in the prior quarter, hurt by lower production at most of its operations, including its flagship Cadia mine.

Newmont Goldcorp Corp said on Monday it plans to suspend operations at its Penasquito mine in Mexico due to a blockade by a trucking contractor and some members of the Cedros community.

Palladium fell by 7 per cent on Monday to $1,361.50 an ounce, but recovered some ground to settle at $1,370.50.

Palladium was up 0.3 per cent at $1,374.51 an ounce on Tuesday.