Reuters logo
PRECIOUS-Gold little changed; markets await decision on Fed chair
October 24, 2017 / 4:23 AM / 2 months ago

PRECIOUS-Gold little changed; markets await decision on Fed chair

    * Spot gold may break resistance at $1,283/oz - technicals
    * Market focus turns to Fed leadership

 (Recasts, updates prices)
    By Apeksha Nair
    Oct 24 (Reuters) - Gold traded sideways on Tuesday, with
investors bracing for the possibility of an early announcement
on the next U.S. Federal Reserve chair.
    Spot gold        slipped 0.1 percent to $1,280.80 an ounce
by 0700 GMT, after hitting its lowest since Oct. 6 at $1,271.86
in the previous session.
    U.S. gold futures         for December delivery rose 0.1
percent to $1,282.30 per ounce.
    "Nothing really spurring a big selloff for gold yet. We're
waiting for currency direction... maybe people are anxious about
an early announcement from Trump on the Fed chair," said a Hong
Kong-based trader.
    The dollar eased against a basket of major currencies       
but edged up versus the yen       , trading within sight of a
three-month high hit against the latter in the previous session,
as attention turned to who would be the next Fed chair.
    President Donald Trump told reporters on Monday he is "very,
very close" to making his decision on who should chair the Fed.
            
    A less hawkish candidate would be expected to favour lower
interest rates, reducing the value of the dollar and making the
greenback-denominated metal cheaper for holders of other
currencies. 
    The Fed will raise interest rates in December and twice next
year, according to a Reuters poll of economists showed, who now
worry that the central bank will slow its tightening because of
expectations that inflation will remain low.             
    "I'm very surprised we're up here. Risk is still on if you
look at stock markets. Generally gold should be lower... I was
expecting gold to drift down to $1,260 area," said the Hong
Kong-based trader.
    "We'll probably consolidate around $1,275-$1,285 until some
Fed news comes out."  
    Reuters technicals analyst Wang Tao, however, said spot gold
may break a resistance at $1,283 per ounce and rise into a range
of $1,289-$1,295.             
    In other precious metals, silver        was up 0.2 percent
to $17.08 an ounce after hitting its lowest since Oct. 9 in the
previous session.
    Platinum        was up 0.6 percent at $926.10 an ounce and
palladium        rose 0.6 percent to $964.93 an ounce.

 (Reporting by Apeksha Nair in Bengaluru; Editing by Subhranshu
Sahu and Sunil Nair)
  

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below