Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

REFILE-PRECIOUS-Gold near 3-week peak on dovish Fed; palladium at record high

Published 21/03/2019, 01:44 pm
Updated 21/03/2019, 01:44 pm
© Reuters.  REFILE-PRECIOUS-Gold near 3-week peak on dovish Fed; palladium at record high

© Reuters. REFILE-PRECIOUS-Gold near 3-week peak on dovish Fed; palladium at record high

(Corrects spelling of Fed in sixth bullet point)

March 21 (Reuters) - Gold rose on Thursday, trading close to a three-week peak hit in the previous session after the U.S. Federal Reserve phased out a possibility of an interest rate hike this year, while palladium scaled a record peak on supply issues.

FUNDAMENTALS

* Spot gold XAU= gained 0.3 percent at $1,315.81 per ounce as of 0114 GMT, after touching its highest since Feb. 28 at $1,316.58 in the previous session.

* U.S. gold futures GCv1 rose 1.1 percent to $1,316.10 an ounce.

* Spot palladium XPD= gained 0.4 percent to $1,609.70 an ounce, after registering a record high at $1,615.5 earlier in the session.

* The dollar nursed heavy losses in Asia on Thursday after the Federal Reserve stunned markets by abandoning all plans to raise rates this year, a signal its three-year campaign to normalise policy might be at an end. USD/

* Having downgraded their U.S. growth, unemployment and inflation forecasts, policymakers said the Fed's benchmark overnight interest rate, or fed funds rate, was likely to remain at the current level of between 2.25 percent and 2.50 percent at least through this year. Shares in Asia rose on Thursday after the Fed's policy decision, but concerns over slowing global growth and U.S.-China trade talks are expected to limit gains. MKTS/GLOB

* U.S. President Donald Trump warned on Wednesday that the United States may leave tariffs on Chinese goods for a "substantial period" to ensure that Beijing complies with any trade agreement. Prime Minister Theresa May made an impassioned appeal to British lawmakers to support her on Wednesday after the European Union said it could only grant her request to delay Brexit for three months if parliament next week backed her plans for leaving. Rapid flows of investor money into physically backed platinum exchange-traded funds (ETFs) and a sharp drop in speculative bets on lower prices suggest the autocatalyst metal is on the verge of a recovery. Citigroup Inc (NYSE:C) C.N plans to sell several tons of gold placed as collateral by Venezuela's central bank on a $1.6 billion loan after the deadline for repurchasing them expired this month, sources said, a setback for President Nicolas Maduro's efforts to hold onto the country's fast-shrinking reserves. South Africa's labour court ruled on Wednesday that the extension of a wage agreement to cover all gold unions and non-unionised employees of mining group Sibanye-Stillwater SGLJ.J is valid and lawful, the miner said. AHEAD (GMT) 0930 UK

Retail sales (Feb) 1200 UK

BOE policy rates (March) 1230 U.S. Initial jobless claims- weekly

2330 Japan Consumer prices (CPI) (Feb)

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.