1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

Gold steady ahead of Fed meeting

Discussion in 'Gold Silver (All things Metal)' started by Scorpio, Mar 14, 2017.

  1. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

    Mar 25, 2010
    Likes Received:
    Trophy Points:
    Gold Market Report | Tue Mar 14, 2017 | 2:17am EDT

    PRECIOUS-Gold steady ahead of Fed meeting, expected U.S. rate rise

    * Spot gold still targets $1,193/oz- technicals
    * Holdings of SPDR Gold Trust rose 0.83 pct on Monday

    (Updates prices, adds comment)
    By Arpan Varghese
    March 14 Gold prices were steady on Tuesday as
    investors waited for the start of a two-day U.S. Federal Reserve
    meeting where the central bank is widely expect to raise
    interest rates.
    Signs of an uptick in inflation and continued strength in
    the U.S. jobs market are expected to convince the Fed to hike
    rates when the meeting concludes on Wednesday.
    "At this moment, an interest rate hike will not be a
    surprise, so any overreaction (to a hike in rates) is unlikely,"
    said Mark To, head of research at Hong Kong's Wing Fung
    Financial Group.
    "People will look for some clues on whether the interest
    rate hike cycle will develop more rapidly than expected."
    In December, the Fed raised its benchmark rate for just the
    second time since the financial crisis of 2007-2009 and forecast
    three rate rises in 2017. Higher rates will likely weigh on gold
    prices as investors abandon the non-interest bearing metal to
    seek higher returns in other assets.
    Spot gold was mostly unchanged at $1,203.32 per ounce
    at 0553 GMT.
    U.S. gold futures were also steady at $1,202.8.
    Investors are also focusing on Wednesday's Dutch elections.
    The chance of a eurosceptic party coming to power in the
    Netherlands is seen as small, but a strong election performance
    could fuel speculation of a surprise result in French
    presidential elections in April and May.
    The uncertainty around the elections and the impact on the
    cohesion of the European Union may support gold as investors
    seek a safe-haven asset.
    Gold is likely to trade in the $1,200-$1,250 per ounce
    range for the coming few weeks, with prices supported by
    political risks in Europe and also the lack of clarity over the
    policies of U.S. President Donald Trump, To said.
    "But on the other hand, there is the counter balance from
    the interest rate hike," he added.
    Spot gold is still targetting $1,193 per ounce, as suggested
    by its wave pattern and a Fibonacci ratio analysis, according to
    Reuters technical analyst Wang Tao.
    "Leading into Wednesday's FOMC decision, participants will
    be looking for gold to initially hold $1,200, while below this
    broad interest around $1,190-$1,195 is expected to restrict
    further declines," MKS PAMP Group trader Sam Laughlin said.
    Meanwhile, holdings of the SPDR Gold Trust , the
    world's largest gold-backed exchange-traded fund, rose 0.83
    percent on Monday.
    In other precious metals, silver inched up 0.1
    percent to $16.93 per ounce.
    Platinum rose 0.5 percent to $940.60 an ounce, while
    palladium ticked up 0.1 percent to $751.90.

    (Reporting by Arpan Varghese in Bengaluru; Editing by Joseph
    Radford and Christian Schmollinger)


Share This Page