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* SPDR Gold holdings jumped 0.8% on Monday
* Spot gold remains neutral in the range of technologies ranging from $ 1,412 to $ 1,427 / oz
* Investors keep an eye on directions for future Fed reductions (Adds comments, details and updates prices)
By Harshith Aranya
July 30 (Reuters) – Gold prices edged down on Tuesday as the dollar remained at its highest level in two months, as investors waited for the outcome of the two-day meeting on the policy of the US Federal Reserve, which should lead to a reduction in interest rates.
The gold spot was down 0.1% at $ 1,425.11 an ounce at 4:27 GMT.
The gold futures in the US rose 0.3% to $ 1,424.30 an ounce.
"Liquidity is still thin, as traders seem to be holding back before the Fed gives its views on monetary policy," said Phillip Futures badyst Benjamin Lu, adding that a firm dollar was putting pressure on creditors. price of gold.
"We are also looking at the tone of the Fed's speech and the number of additional cuts expected. Financial markets are expecting two more cuts in the second half of the year … Overall, we are quite optimistic about gold, "Lu said.
The Fed begins its policy meeting on Tuesday, during which it is generally expected to lower interest rates by 25 basis points. If implemented, this would be the first rate cut by the central bank in a decade.
Meanwhile, the dollar has rallied near a two-month high, as expectations of aggressive Fed rate cuts have faded. A stronger dollar makes gold more expensive for holders of other currencies.
"Nobody doubts that a rate cut (from the Fed) will be reserved this time," said Edward Meir, an badyst at INTL FCStone.
However, "the dizzying hope that prevailed at the beginning of the month and called for a series of cuts that could follow this decision, could be something that, in our opinion, will be brought lightly."
The Bank of Japan maintained its stable monetary parameters on Tuesday but said it would "unhesitatingly" mitigate if the economy slowed down to reach its 2% inflation target set by the central bank.
Trade talks between the United States and China were also set to begin in Shanghai on Tuesday, although the prospects for progress during the two-day meeting are weak.
On a technical level, spot gold remains neutral in the range of $ 1,412 to $ 1,427 an ounce, and an escape could suggest a direction, according to Reuters technical badyst Wang Tao.
The badets of SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, rose 0.83% to 824.89 tonnes on Monday from Friday.
Among other precious metals, silver fell 0.1% to $ 16.44 an ounce and platinum declined 0.2%, to stand at $ 877.12 .
Palladium slid 0.5% to $ 1,546.25 an ounce, after peaking nearly two weeks in the previous session. (Report by Harshith Aranya and Brijesh Patel in Bengaluru, edited by Rashmi Aich and Richard Pullin)
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