Mubasher: Gold prices edged up on Monday, after a 1% leap in the preceding session, as investors awaited a policy rate decision by Federal Reserve in the week, while progress in the trade talks between the US and China weighed on safe-haven appetite.

By 8:51 am GMT, spot gold inched up by 0.08% to $1,505.83 per ounce, while US gold futures rose by 0.15% to $1,507.60 per ounce.

“All eyes are on the Fed meeting now, but what investors are really looking forward to is some clarity on whether the central bank will continue to remain dovish for the rest of this year,” National Australia Bank (NAB) economist John Sharma was quoted by the news agency.

The Fed policymakers are due to meet on 29 and 30 October, where they are widely expected to deliver a benchmark interest rate cut for the third time this year.

If the Fed cuts rates this week, gains will be limited as the trade ties between the US and China are not as strained as they were during the summer, AxiTrader market strategist Stephen Innes was quoted by Reuters.

US President Donald Trump last week said that the trade negotiations with China were going very well, while Beijing wants to clinch a deal “very badly.”

The remarks fuelled risk-on sentiment among investors, sending Asian stock markets to hit three-month peak on Monday.

Nevertheless, “any development on the trade war front will just have an interim effect on gold,” Sharma said, adding that “the situation is far more complicated to be solved in a hurry.”

In Europe, the European Union (EU) approved on Friday the UK’s demand for postponing a Brexit deadline, but no date was provided yet, allowing British lawmakers to decide on Prime Minister Boris Johnson’s call for a general election.