Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

PRECIOUS-Gold eases as investors await further signals on Fed stance

Published 2019-08-22, 01:59 p/m
© Reuters.  PRECIOUS-Gold eases as investors await further signals on Fed stance
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
GLD
-

* Palladium could climb to $1,530/oz in near term -UBS

* SPDR Gold holdings up by about 24 tonnes so far in August (Updates prices)

By Sumita Layek and Asha Sistla

Aug 22 (Reuters) - Gold inched lower on Thursday after comments from U.S. Federal Reserve officials dampened hopes for additional monetary easing, although investors awaited further clarity from the central bank chief at the Jackson Hole symposium.

Spot gold XAU= was down 0.2% at $1,498.45 an ounce by 1:42 pm EDT (1742 GMT), having earlier touched its lowest since Aug. 13 at $1,491.50. U.S. gold futures GCcv1 settled down 0.5% at $1,508.5.

"The entire market is in a wait-and-see mode, but there has been a steady stream of Fed speakers who have come out with a more hawkish message," said Daniel Ghali, commodity strategist at TD Securities.

"This could be interpreted as an attempt to ready the markets for a less-dovish-than-expected speech from Fed Chair Jerome Powell."

A day after minutes of the Fed's July meeting showed policymakers were divided over interest rate cuts, Philadelphia Fed President Patrick Harker said he does not see the case for additional stimulus. is now on Powell's speech on Friday during the central bank's symposium in Jackson Hole, Wyoming, with market participants expecting him to clarify the July minutes and monetary policy direction.

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

"For the most part, traders just see this drop (in prices) as an opportunity to pick up a little bit more, but nobody is expecting any big moves out of Jackson Hole," said Michael Matousek, head trader at U.S. Global Investors.

Gold had briefly turned positive after U.S. manufacturing data released earlier in the day showed the first month of contraction in almost a decade amid concerns over whether the U.S.-China trade conflict would trigger a recession. will also keep a close eye on the Group of Seven summit this weekend.

Meanwhile, holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, have increased by about 24 tonnes so far this month. GOL/ETF

Palladium XPD= rose 1.2% to $1,489.50 an ounce after nearing $1,500 on Wednesday.

"We expect palladium to climb to $1,530 in the near term. Although slower global growth and risk aversion act as headwinds, palladium remains supported by fundamentals," UBS analysts said in a note.

"Rising palladium loadings as emissions regulations tighten offset weakness in global car sales, suggesting continued growth in demand. Given constrained supplies, this implies that market deficits are likely to persist."

Palladium outshone gold for the first time in 16 years toward the end of 2018, but gold regained its edge over the autocatalyst metal on Aug. 1. XAG= fell 0.3% to $17.07 per ounce, while platinum XPT= edged 0.8% higher to $859.80.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.