Gold Prices Little Changed, All Eyes on Fed Pick

Published 2017-11-02, 08:47 a/m
© Reuters.  Gold prices hold steady ahead of Fed head nomination, U.S. tax plan
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Investing.com - Gold prices were little changed on Thursday, as markets were awaiting the nomination of the next Federal Reserve head as well as the unveiling of a fiscal plan, while positive U.S. data lent some support to the dollar.

Comex gold futures were steady at $1,276.97 a troy ounce by 08:45 a.m. ET (12:45 GMT), off session highs of $1,282.36.

The U.S. Department of Labor reported on Thursday that initial jobless claims fell unexpectedly last week, staying close to the lowest level in four decades.

Data also showed that U.S. worker productivity increased at its fastest pace in three years in the third quarter.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.63, off session lows of 94.37.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

The greenback had come under pressure earlier, as U.S. lawmakers were set to announce plans later Thursday for a measure that will seek up to $6 trillion in tax cuts over 10 years.

Also Thursday, U.S. President Donald Trump was expected to nominate Fed Governor Jerome Powell, seen as less hawkish than other candidates, as the next chair of the U.S. central bank.

At the conclusion of its policy meeting on Wednesday, the Fed left interest rates unchanged, as expected, but further added to expectations for a December rate hike by highlighting "solid" economic growth and a strengthening labor market.

Elsewhere on the Comex, silver futures declined 0.44% to $17.10 a troy ounce.

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