Gold dips for first session in nine, dollar down

Gold futures tilted lower in Asian trade off record highs while the dollar index inched down as well, ahead of US data while the Federal Reserve wraps up its two day policy meeting. 

As of 04:04 GMT, gold futures due in December fell 0.19% to $1,968 an ounce, while the dollar index inched down 0.05% to 93.69. 

From the US, the goods trade balance is expected to show a $75.5 billion deficit, up from $74.3 billion in May, while wholesale inventories are expected down 0.4% in June. 

Pending home sales are expected up 15.6% in June, compared to a 44.3% surge in May. 

The Federal Open Market Committee is wrapping up its policy meeting today, expected to maintain rates at near zero to support borrowing through December. 

The Fed extended duration of loan support from September to December to bolster the economy during the pandemic, noting the move has already helped the labor sector, households, and companies considerably. 

Senate Majority Leader Mitch McConnell recently revealed the Republican rescue bill for the economy, amounting to $1 trillion for the unemployed and other affected sectors of society.  

Both Pfizer and Moderna announced the start of their late stage Covid 19 vaccine trials with over 30,000 participants

Recent US-China tensions bolstered gold prices in previous days, after China asked the US to close the Chengdu consulate in retaliation of the shutdown of the China Houston consulate, with bilateral relations continuing to deteriorate between both sides. 

Recent data showed global gold funds reported an increase of 2.7% in cash flows, adding 104 metric tonnes of gold, or about $5.6 billion in June, with total increases in the first half of 2020 reaching $39.5 billion, a record high on haven demand.