NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

PRECIOUS-Gold falls as U.S. rate outlook weighs, platinum at 6-1/2 year low

Published 28/09/2015, 08:46 pm
© Reuters.  PRECIOUS-Gold falls as U.S. rate outlook weighs, platinum at 6-1/2 year low
XAU/USD
-
XAG/USD
-
VOWG
-
SOGN
-
GC
-
PA
-
PL
-

* Gold traders await U.S. data this week for cues

* VW emissions scandal further weighs on platinum (Updates throughout, changes dateline from SINGAPORE)

By Clara Denina

LONDON, Sept 28 (Reuters) - Gold fell for a second session on Monday, as the dollar stood close to a five-week high ahead of a key U.S. jobs report later in the week, which could boost bets the Federal Reserve will hike interest rates this year.

Platinum XPT= fell nearly 3 percent to a fresh 6-1/2 year low of $617.25 an ounce on Monday.

It posted its biggest weekly drop since July last week on fears that the Volkswagen (XETRA:VOWG) emissions scandal could dent demand for diesel cars, where it is used in catalysts. ID:nL5N11T3EN

"Platinum must continue to fall in the short term because of the lack of clarity in the Volkswagen scandal...it is a very complicated situation involving carmakers, regulators and governments," Societe Generale (PARIS:SOGN) analyst Robin Bhar said.

Spot gold XAU= fell 1.2 percent to $1,133.36 an ounce by 1034 GMT, extending Friday's declines made after Fed chair Janet Yellen said she expected to begin raising rates later in 2015.

Several Fed officials are scheduled to speak this week, keeping the focus firmly on U.S. monetary policy. Traders will also be closely monitoring economic data, including non-farm payrolls data due on Friday, to gauge the strength of the economy.

Non-interest-paying gold has lost about 3 percent this year on fears that demand could take a hit in a higher interest rates' environment.

Data on Friday supported the view that the Fed could begin raising rates over the next months. U.S. gross domestic product rose at a 3.9-percent annual pace in the second quarter, up from the 3.7 percent reported last month. ID:nL1N11V0O8

The Fed has said the timing of a rate hike would be data dependent.

"Interest around $1,141 should continue to support gold over the short-term, while $1,155 will provide resistance," MKS Group said in a note.

Earlier in the month, the Fed delayed a long-anticipated rise in U.S. rates, citing concerns over the global economy and improving investor sentiment towards gold. Holdings in SPDR Gold Trust, the world's top gold-backed exchange-traded fund, rose for a fourth straight session on Friday. GOL/ETF

Hedge funds and money managers raised their bullish bets in COMEX gold futures and in the week to Sept. 22, U.S. Commodity Futures Trading Commission data showed on Friday. ID:nL1N11V219

Palladium XPD= fell 2.2 percent to $648.47 an ounce, following a near 10-percent jump last week, its biggest weekly gain since December 2011. Silver XAG= fell 2.3 percent to $14.74 an ounce.

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.