Gold Prices Drift Sideways as Fed Meeting Starts By

© Reuters. — Gold prices stayed stuck in tight ranges on Tuesday as the market settled down to await the outcome of the Federal Reserve’s two-day policy meeting, which kicked off earlier.

By 10:55 AM ET (1455 GMT) for delivery on the Comex exchange were down 0.1% from late Thursday at $1,509.75 a troy ounce. was up 0.3% at $1,502.01 an ounce.

The yellow metal has failed to make noticeable gains since the weekend attacks on Saudi Arabian oil installations, with the latest U.S. economic data chipping away at confidence that the Fed will deliver a 25 basis point cut. While the implied chance of a cut was at over 90% last week, it’s fallen to less than 65% currently, according to’s .

An unexpected rebound in and in August, data for which were released earlier, did nothing to strengthen the case for lower rates. Nor did a rise in the National Association of Home Builders , which hit its highest level since October.

In addition, there has been no clear sign that the attacks on Saudi Arabia will trigger a broader conflict with Iran, which would demand higher premiums for all haven assets.

Saudi Arabia has so far not endorsed U.S. claims that Iran was directly responsible for the attacks, and comments from President Donald Trump indicated that he was content to let the kingdom work out an alternative response to military escalation. Trump told reporters on Monday he would “sit down with the Saudis and work something out.”

Bullion continued to receive some support from falling bond yields after a Reuters report suggested that Saudi Arabia could restore its oil output to desired level within two to three weeks, averting the risk of a sustained sharp increase in crude prices that could push inflation higher.

The Treasury bond yield fell by two basis points to 2.29%, while the yield on the note fell to 1.83%.

Elsewhere, edged down to $18.00 an ounce while were effectively unchanged at 939.45 an ounce.

inched down 0.5% to $2.63 a pound.

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