Breaking News
0

PRECIOUS-Gold dips to 1-week low; investors await Fed rate call

CommoditiesNov 08, 2018 02:29
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. PRECIOUS-Gold dips to 1-week low; investors await Fed rate call

* SPDR Gold holdings fell for 4th session on Wednesday

* Fed policy statement due to be released at 1900 GMT (Adds quotes, updates prices)

By Eileen Soreng

BENGALURU, Nov 8 (Reuters) - Gold prices fell to their lowest in a week on Thursday as the dollar and stocks rose, while investors digested the U.S. midterm election results and turned their focus to the Federal Reserve's monetary policy decision due later in the day.

The Fed is not expected to raise interest rates until its next gathering in December, however market participants are waiting to see whether it offers clues about possible rate increases in December and in 2019.

"A rate increase in December is all but fully priced in, but next year's outlook is still in flux," said Ilya Spivak, a currency strategist for DailyFX.

"A confident tone is likely to weigh on gold, while a cautious one may give it a bit of a lift."

The Fed raised rates in September and said it planned four more increases by the end of 2019 and another in 2020, citing steady economic growth and a robust jobs market. U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion.

Spot gold XAU= was down 0.3 percent at $1,222.31 per ounce, as of 0710 GMT, after hitting its lowest since Nov. 1 at $1,221.1 earlier in the session.

U.S. gold futures GCcv1 fell 0.2 percent to $1,226.3 per ounce.

"We see dollar and stocks are a bit stronger and that's also pushing gold down a little," said Ronald Leung, chief dealer, Lee Cheong Gold Dealers, Hong Kong.

The dollar index .DXY , which measures the greenback against a basket of six major currencies, traded in a narrow range and was up 0.2 percent, having touched a more than two-week low in the previous session. USD/

Asian stocks rose to a one-month peak following a post-election rally on Wall Street. MKTS/GLOB

Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.19 percent to 755.23 tonnes on Wednesday, marking the fourth straight session on declines. support (for gold) should be at the $1,216 100-day moving average level. On the upside, gold will need to close above the solid technical resistance at $1,235-36 before contemplating a move higher," traders at MKS PAMP said in a note.

In other precious metals, silver XAG= fell 0.5 percent to $14.50 per ounce.

Palladium XPD= dipped 0.5 percent to $1,127.55 per ounce. It touched a two-week high of $1,139.50 an ounce in the previous session.

Platinum XPT= was down 0.2 percent at $870.60 an ounce, after hitting its highest since June 25 at $877.50 an ounce on Wednesday.

PRECIOUS-Gold dips to 1-week low; investors await Fed rate call
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email