You are here: Home » International » News » Markets
Business Standard

Gold steady as Fed rate hike concerns weigh on dollar

US gold futures was broadly unchanged at $1,262.8 an ounce

Reuters 

Gold up 6.7% in Jan on renewed prospect as safe asset

prices held ground on Wednesday on a weaker amid uncertainties around the timing of a rate hike by the Federal Reserve and upcoming US presidential election.

Spot was firm at $1,262.00 an ounce at 0731 GMT. In the previous session, the precious metal touched $1,264.78, its highest since October 10.

US futures was broadly unchanged at $1,262.8 an ounce.

Recent support for prices has had to do with the demand mostly from and emerging markets, said Richard Xu, a fund manager at HuaAn Gold, China's top exchange-traded fund.

"If you look at the Chinese local prices, they are roughly 2 per cent higher than the global prices," Xu added.

"The is probably showing some kind of a weakness after pushing out so high, so that might also help the stabilise for a while."

The stepped back from a seven-month high against an index of currencies on Wednesday after US consumer prices showed a moderation in underlying inflation, prompting markets to trim bets on a December Federal Reserve rate hike. 

A Reuters poll showed chances the Federal Reserve will raise interest rates in December are now put at 70 per cent.

is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Spot may test resistance at $1,266 per ounce, as suggested by its wave pattern and Fibonacci projection analysis, according to Reuters technical analyst Wang Tao.

Asian shares rose for a second session as a barrage of Chinese data confirmed that the economy had stabilised.

"We remain relatively negative on short-term despite a stronger start to the week," INTL FCStone analyst Edward Meir said in a note.

"We expect further strengthening going into Q4 on account of an election victory for Hillary Clinton along with the likelihood of a Fed rate hike."

Among other precious metals, spot silver was steady at $17.59 an ounce. It hit a more-than-one-week high of $17.71 on Tuesday.

and were also mostly unchanged at $940 and $637.60, respectively.

RECOMMENDED FOR YOU

Gold steady as Fed rate hike concerns weigh on dollar

US gold futures was broadly unchanged at $1,262.8 an ounce

US gold futures was broadly unchanged at $1,262.8 an ounce
prices held ground on Wednesday on a weaker amid uncertainties around the timing of a rate hike by the Federal Reserve and upcoming US presidential election.

Spot was firm at $1,262.00 an ounce at 0731 GMT. In the previous session, the precious metal touched $1,264.78, its highest since October 10.

US futures was broadly unchanged at $1,262.8 an ounce.

Recent support for prices has had to do with the demand mostly from and emerging markets, said Richard Xu, a fund manager at HuaAn Gold, China's top exchange-traded fund.

"If you look at the Chinese local prices, they are roughly 2 per cent higher than the global prices," Xu added.

"The is probably showing some kind of a weakness after pushing out so high, so that might also help the stabilise for a while."

The stepped back from a seven-month high against an index of currencies on Wednesday after US consumer prices showed a moderation in underlying inflation, prompting markets to trim bets on a December Federal Reserve rate hike. 

A Reuters poll showed chances the Federal Reserve will raise interest rates in December are now put at 70 per cent.

is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Spot may test resistance at $1,266 per ounce, as suggested by its wave pattern and Fibonacci projection analysis, according to Reuters technical analyst Wang Tao.

Asian shares rose for a second session as a barrage of Chinese data confirmed that the economy had stabilised.

"We remain relatively negative on short-term despite a stronger start to the week," INTL FCStone analyst Edward Meir said in a note.

"We expect further strengthening going into Q4 on account of an election victory for Hillary Clinton along with the likelihood of a Fed rate hike."

Among other precious metals, spot silver was steady at $17.59 an ounce. It hit a more-than-one-week high of $17.71 on Tuesday.

and were also mostly unchanged at $940 and $637.60, respectively.

image
Business Standard
177 22

Gold steady as Fed rate hike concerns weigh on dollar

US gold futures was broadly unchanged at $1,262.8 an ounce

prices held ground on Wednesday on a weaker amid uncertainties around the timing of a rate hike by the Federal Reserve and upcoming US presidential election.

Spot was firm at $1,262.00 an ounce at 0731 GMT. In the previous session, the precious metal touched $1,264.78, its highest since October 10.

US futures was broadly unchanged at $1,262.8 an ounce.

Recent support for prices has had to do with the demand mostly from and emerging markets, said Richard Xu, a fund manager at HuaAn Gold, China's top exchange-traded fund.

"If you look at the Chinese local prices, they are roughly 2 per cent higher than the global prices," Xu added.

"The is probably showing some kind of a weakness after pushing out so high, so that might also help the stabilise for a while."

The stepped back from a seven-month high against an index of currencies on Wednesday after US consumer prices showed a moderation in underlying inflation, prompting markets to trim bets on a December Federal Reserve rate hike. 

A Reuters poll showed chances the Federal Reserve will raise interest rates in December are now put at 70 per cent.

is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Spot may test resistance at $1,266 per ounce, as suggested by its wave pattern and Fibonacci projection analysis, according to Reuters technical analyst Wang Tao.

Asian shares rose for a second session as a barrage of Chinese data confirmed that the economy had stabilised.

"We remain relatively negative on short-term despite a stronger start to the week," INTL FCStone analyst Edward Meir said in a note.

"We expect further strengthening going into Q4 on account of an election victory for Hillary Clinton along with the likelihood of a Fed rate hike."

Among other precious metals, spot silver was steady at $17.59 an ounce. It hit a more-than-one-week high of $17.71 on Tuesday.

and were also mostly unchanged at $940 and $637.60, respectively.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard