Gold rises as Fed sees fee hikes slowing down 'quickly' - Geo Tv News

Gold rises as Fed sees fee hikes slowing down ‘quickly’

Article content material

Gold costs prolonged good points on Wednesday as minutes from the U.S. Federal Reserve’s November coverage assembly confirmed a “substantial majority” of members opting to decelerate fee hikes.

Spot gold rose 0.5% to $1,749.04 per ounce by 2:38 p.m. ET (1938 GMT), whereas U.S. gold futures settled 0.3% greater at 1,745.6.

Article content material

“Gold traded greater in a reduction rally after the Fed minutes contained no hawkish surprises, and nearly confirmed the tempo of hikes would drop to 50 bps in December,” mentioned Tai Wong, a senior dealer at Heraeus Treasured Metals in New York.

Article content material

“The monetary markets are satisfied the Fed is overtightening so it’s dovishly decoding the minutes which incorporates no actual surprises given Fed commentary the previous two weeks.”

A slower tempo would higher permit the Federal Open Market Committee to evaluate progress towards its objectives of most employment and value stability, as per the Fed’s Nov. 1-2 assembly minutes.

“Figuring out that the majority of these rate of interest hikes are already factored into the market, I’d say there isn’t a longer a darkish cloud of rate of interest hikes looming over the gold market,” mentioned David Meger, director of metals buying and selling at Excessive Ridge Future.

Greater charges improve the chance price of holding non-yielding gold.

Additionally serving to gold, the greenback was down practically 1%, making gold cheaper for holders of foreign currency, whereas benchmark treasury yields had been additionally decrease for the day.

Moreover, U.S. enterprise exercise contracted for a fifth straight month in November, with a measure of latest orders dropping to its lowest degree in 2-1/2 years as greater rates of interest slowed demand.

In different metals, silver gained 1.9% to $21.47 per ounce, platinum was up 0.3% to $993.88 and palladium rose 1.1% to $1,880.18. (Reporting by Seher Dareen in Bengaluru; Enhancing by Maju Samuel and Krishna Chandra Eluri)

Supply hyperlink

Leave a Reply

Your email address will not be published. Required fields are marked *