Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

PRECIOUS-Gold inches higher as Fed meeting nears

Published 15/09/2015, 05:23 am
© Reuters.  PRECIOUS-Gold inches higher as Fed meeting nears
XAU/USD
-
XAG/USD
-
PA
-
PL
-
DXY
-

* Wall Street, European shares retreat

* Federal Reserve meeting on Sept 16-17

* Speculators lower bullish bets in COMEX gold (New throughout, updates prices and market activity; adds second byline, dateline, previously LONDON)

By Marcy Nicholson and Clara Denina

NEW YORK/LONDON, Sept 14 (Reuters) - Gold turned slightly higher on Monday, clawing above the prior session's one-month low on uncertainty ahead of a Federal Reserve policy meeting that will be scrutinized for clarity on when the U.S. central bank will raise interest rates.

Spot gold XAU= was up 0.1 percent at $1,109 an ounce by 3:15 p.m. EDT (1915 GMT). It had fallen to $1,098.35 on Friday, the lowest since Aug. 11.

U.S. gold GCcv1 for December delivery settled up 0.4 percent at $1,107.70, but was also close to its lowest in a month.

The Fed will kick off a two-day policy meeting on Wednesday. Though some in the market still reckon a "lift-off" could come this week, the view is gathering steam that faltering global growth could push that back even into next year. FRX/

"There has been so much anticipation (about the Fed rate hike) that we are now anticipated out," Macquarie analyst Matthew Turner said.

"I don't think that not raising rates in September could feel like a complete change of policy," Turner said, adding that one concern for gold could be if the dollar resumes its upward move against developed market currencies.

The dollar .DXY turned up 0.1 percent after falling to a near-three-week low against a basket of major currencies. Wall Street and European shares retreated while oil prices fell as investors positioned for the Fed meeting. MKTS/GLOB

Gold has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding non-yielding gold while weighing on the dollar, in which the metal is priced.

"It's quite resilient coming into the Fed meeting," said Phillip Streible, senior commodities broker for RJO Futures in Chicago, adding that the market's change of direction indicates uncertainty.

A small majority of forecasters are sticking to their guns and predicting the Fed will pull the trigger this week. ID:nL1N11H1B3

"A non rate hike in September could give a temporary respite to gold, but prices are unlikely to breach recent highs around $1,170," ActivTrades chief analyst Carlo Alberto de Casa said.

Hedge funds and money managers cut their bullish stance in COMEX gold contracts to a three-week low in the week ended Sept. 8, U.S. government data showed on Friday. ID:nL1N11H1T4

Other precious metals remained under pressure, with silver XAG= down 1.6 percent at $14.38 an ounce and platinum XPT= falling 1.1 percent to $954 an ounce.

Palladium XPD= fell 1.3 percent to $584.50.

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.