Gold bounces back on Fed meeting after posting largest drop for the year
December 16, 2014 3:09 am
Gold climbed back up from recording its largest single day fall this year just as the US Federal Reserve begins its two day meeting where policy makers are set to discuss the schedule of its first interest rate increase.
Spot gold advanced earlier today by as much as 0.5% for a price per ounce of $1,199.41 and was trading at $1,198.28 mid morning Singapore time, based on generic pricing from Bloomberg. The precious metal declined by 2.4% yesterday, its biggest loss since December 19th, when data from the manufacturing industry of the US turned out to be better than expected.
The Bloomberg Dollar Spot Index was mostly unchanged right below its highest level in five years with the US central bank meeting from December 16 to 17 to discuss the timing of raising borrowing costs.
Analyst Huang Wei from Huatai Great Wall Futures Co. in Shanghai says that, “Investors are closely watching the Fed’s tone and whether it will abandon its ‘considerable time’ language.” Huang added that such revision may be the biggest signal that interest rate hikes are coming near and that buyers may be lured in should gold fall to less than $1,200.
Futures for gold with a delivery date in February retreated by 0.8% for a price per ounce of $1,198.60 in New York’s Comex a day after falling by 1.2%.
Spot silver increased by 0.2% for a price per ounce of $16.2006 after declining yesterday by 5.1%, its largest loss since September 2013.
Platinum for immediate delivery advanced by 0.1% to $1,211 per ounce after recording its fourth consecutive losing day yesterday, while palladium was mostly unchanged at a price per ounce of $798.35.
The material has been provided by InstaForex Company – www.instaforex.com
Gold climbed back up from recording its largest single day fall this year just as the US Federal Reserve begins its two day meeting where policy makers are set to discuss the schedule of its first interest rate increase.
Spot gold advanced earlier today by as much as 0.5% for a price per ounce of $1,199.41 and was trading at $1,198.28 mid morning Singapore time, based on generic pricing from Bloomberg. The precious metal declined by 2.4% yesterday, its biggest loss since December 19th, when data from the manufacturing industry of the US turned out to be better than expected.
The Bloomberg Dollar Spot Index was mostly unchanged right below its highest level in five years with the US central bank meeting from December 16 to 17 to discuss the timing of raising borrowing costs.
Analyst Huang Wei from Huatai Great Wall Futures Co. in Shanghai says that, “Investors are closely watching the Fed’s tone and whether it will abandon its ‘considerable time’ language.” Huang added that such revision may be the biggest signal that interest rate hikes are coming near and that buyers may be lured in should gold fall to less than $1,200.
Futures for gold with a delivery date in February retreated by 0.8% for a price per ounce of $1,198.60 in New York’s Comex a day after falling by 1.2%.
Spot silver increased by 0.2% for a price per ounce of $16.2006 after declining yesterday by 5.1%, its largest loss since September 2013.
Platinum for immediate delivery advanced by 0.1% to $1,211 per ounce after recording its fourth consecutive losing day yesterday, while palladium was mostly unchanged at a price per ounce of $798.35.
The material has been provided by InstaForex Company – www.instaforex.com
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