FX.co ★ XAU/USD, GOLD

XAUUSD M-15 Time Frame Update The gold price (XAU/USD) rose to near $4,165 during the early Asian session on Wednesday. The precious metal edged higher as traders sought refuge in safe-haven assets amid trade tensions and anticipation of a US interest rate decrease. Federal Reserve (Fed) executives Stephen Miran, Christopher Waller, and Jeff Schmid will talk later on Wednesday. Renewed trade tensions between the United States (US) and China rekindle demand for safe haven assets. US Trade Representative Jamieson Greer warned on Tuesday that President Donald Trump might impose 100% tariffs on China on November 1 or sooner, depending on Beijing's next move in the rare earths conflict. On Tuesday, the United States and China will begin charging new port fees to ocean shipping companies, affecting everything from holiday toys to crude oil, making the high seas a major battlefield in the world's two largest economies' trade war. The US is slated to begin collecting fines on October 14. The yellow metal is also supported by rising prospects of a Fed rate reduction. Fed Chair Jerome Powell stated that the Fed is on schedule to drop interest rates by another quarter-point later in the October policy meeting, although the government shutdown has a major impact on its ability to read the economy. Markets are presently pricing in an almost certain 25 basis point (bps) rate decrease at the Fed's October meeting, with another reduction expected in December, according to the CME FedWatch tool. Lower interest rates may cut the opportunity cost of owning gold, boosting the non-yielding precious metal. Gold dealers will closely monitor the Fed's discussion later on Wednesday for insights into the US interest rate outlook. Any unexpected hawkish remarks from Fed members could increase the US Dollar (USD) and damage the USD-denominated commodity price in the short run.