NDTV Profit

Gold Rates Move Further Away From 7-Week Highs

The dollar firmed on expectations the Federal Reserve could trim its bond holdings in September. Spot gold had fallen 0.3% to $1,262.40 per ounce by 0033 GMT (6:03 am in India).
EMAIL
COMMENTS
US gold futures for December delivery dropped 0.8% to $1,268.70 per ounce
US gold futures for December delivery dropped 0.8% to $1,268.70 per ounce
Gold prices on Thursday drifted further away from seven-week highs hit earlier this week, as the dollar firmed on expectations the Federal Reserve could trim its bond holdings in September. Spot gold had fallen 0.3 per cent to $1,262.40 per ounce by 0033 GMT (6:03 am in India). US gold futures for December delivery dropped 0.8 per cent to $1,268.70 per ounce. The US economy will likely be strong enough for the Fed to trim its bond holdings in September, San Francisco Fed President John Williams said on Wednesday, in a sign the US central bank is close to unwinding a controversial stimulus tool.

St Louis Fed President James Bullard is opposed to further US interest rate increases by the central bank and warned that more hikes could hinder domestic inflation from achieving the Fed's 2-per cent goal, Market News International reported on Wednesday.

The Fed should not "overreact" to weak inflation especially since data will arrive before a mid-September policy meeting that could clarify whether the weakness is temporary, Cleveland Fed President Loretta Mester said on Wednesday.

US private employers added 178,000 jobs in July, below economists' expectations, a report by a payrolls processor showed on Wednesday.

US President Donald Trump grudgingly signed into law new sanctions against Russia on Wednesday, a move Moscow said amounted to a full-scale trade war and an end to hopes for better ties with the Trump administration.

A ban on travel by US passport holders to North Korea will take effect on Sept. 1 and Americans in the country should leave before that date, the US State Department said on Wednesday.

The Bank of England looks set to keep interest rates at a record low once again on Thursday with investors looking for signs that, faced with Brexit, it is getting nearer to raising rates for the first time in a decade.

© Thomson Reuters 2017



For latest news on Business, like us on Facebook and follow us on Twitter.
ALSO READ From Tax Breaks To A 21-Foot Cactus: Why US Cities Are Wooing Amazon

Advertisement

Advertisement

GAINERS / LOSERS