Gold futures edged lower Monday but held above the psychologically important level of $1,500 an ounce as traders await this week’s Federal Reserve policy meeting.

Gold for December delivery

GCZ19, -0.33%

 on Comex fell $4.30, or 0.3%, to $1,501 an ounce, while December silver

SIZ19, -0.06%

 edged 1.9 cents higher, or 0.1%, to $17.945 an ounce.

“Gold currently remains supported above $1,500 amid the backdrop of Fed rate cut expectations, but unless increased expectations for further rate cuts are cemented post FOMC, the going could get especially tough if the [U.S. dollar] bounces significantly higher on a less dovish Fed,” said Stephen Innes, analyst at AxiTrader, in a note.

A stronger dollar can be a negative for commodities priced in the currency, making them more expensive to users of other currencies.

The Federal Reserve is widely expected to deliver another quarter-point cut to its benchmark interest rate when policy makers conclude a two-day meeting on Wednesday.

Read: 3 things to watch when the Fed meets this week

Related: Why would the Fed cut interest rates a 3rd time even as stocks near records?

U.S.-China trade talks also remain in focus, with Washington and Beijing making noises that suggest they may be nearing agreement behind a so-called phase one deal, which could be detrimental for gold prices, Innes said. Gold found support earlier this year as worries around trade sparked sustained bouts of demand for traditional havens.

In other metals trading action, December palladium

PAZ19, +1.31%

 rose 1.4% to $1,767.80 an ounce, while January platinum

PLF20, +0.09%

 was up 0.3% at $935.80 an ounce.

December copper

HGZ19, +0.13%

 gained 0.2% to $2.6815 a pound.

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2019-10-28