Gold prices dip amid lowered rate cut expectations

Prices of the safe-haven Gold rose on Tuesday in Asia amid lowered rate cut expectations.

U.S. Gold Futures for December delivery were down 0.6% at $1,495.85 per ounce by 1:22 AM ET (05:22 GMT) as ’s Fed Rate Monitor Tool showed the probability for a quarter-point cut when the Fed meets Oct. 28-29 at 69.5%, versus 72.7% on Monday and 78% on Friday.

The reduced probability for a rate cut continued to hurt gold in post-settlement trade, pushing it beneath the key $1,500 support.

So far this year, the Fed has conducted two quarter-point rate cuts, back to back in July and September, to try and preserve the U.S. economy’s record decade-long growth.

Meanwhile, Sino-U.S. trade talks are expected to dictate gold’s movement late this week, when high-level negotiations between the two sides resume this Thursday.

The latest reports suggested that China is becoming more hesitant to agree on a broad trade deal with the U.S.

Trade tension between the two sides intensified just days before the talks begin as eight Chinese technology companies were reportedly placed on a U.S. blacklist on Monday amid accusations of being implicated in human rights violations against Muslim minorities in the Xinjiang province.

Earlier reports said that Washington is considering ways to limit American investors’ portfolio flows into China, including potentially delisting Chinese companies from U.S. stock exchanges.

Hong Kong’s political unrest also received some focus as violence in the city escalated during the weekend.

The Hong Kong government invoked a colonial-era emergency law to impose a ban on protesters wearing face masks. The decision reportedly further angered critics, who destroyed China-owned banking facilities and retail outlets across the city.