Investing.com – Gold prices were flat on Tuesday as President Donald Trump’s threat that America would “totally destroy” North Korea if forced to defend itself or its allies did little to raise safe-haven demand as investors focused on the two-day Federal Open Market Committee which concludes on Wednesday.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $0.49, or 0.04%, to $1,311.27 a troy ounce.
"If [the US] is forced to defend itself or its allies, we will have no choice but to totally destroy North Korea," President Donald Trump said.
President Trump’s latest threat to North Korea failed to garner much attention as investor focus remained on the two-day Federal Open Market Committee meeting that will conclude Wednesday with a statement on monetary policy.
As well as announce plans to unwind its $4.5 trillion balance sheet, the U.S. central bank is expected to provide market participants with an insight into its thinking on additional rate hikes and the progress of the U.S. economy.
“The Fed is going to make sure that the process would stay as smooth as possible and this would likely push them to hold their gradual approach in hiking the interest rates,” said Naeem Aslam, chief market analyst with ThinkMarkets.
“The odds of a December rate hike are standing at 40%, but a hawkish tone by the Fed could strengthen the dollar index,” he said.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
In other precious metal trade, silver futures gained 0.82% to $17.30 a troy ounce while platinum futures lost 0.93% to $952.20.
Copper traded flat at $2.97 while natural gas fell by 0.48% to $3.13.