Gold prices fall Rs 256 to Rs 29598 as dollar extends gains

Share
Gold prices fall Rs 256 to Rs 29598 as dollar extends gains

Spot gold was down 0.7 percent at $1,285.40 an ounce as of 1417 GMT, while U.S. gold futures for December delivery slipped 1.2 percent to $1,286.80 per ounce.

Gold fell for a third straight session on Wednesday on pressure from the USA dollar's gains for much of the session and amid speculation that the next chair of the Federal Reserve could be a policy hawk.

Gold prices were roughly unchanged on Wednesday amid dollar weakness on the back of weaker-than-expected housing data. "It's partly (the possibility of a hawkish Fed chair) and that the Fed is going to and needs to hike rates this year that is contributing to a bullish dollar environment", Martin Arnold, commodities analyst at ETF Securities, said.

Spot gold was down 0.3 percent at $1,281.50 an ounce by 2:21 p.m. EDT (1821 GMT), having touched its lowest since October 9 at $1,276.73.

Powell is expected to be the next Fed chairman, according to a slim majority of economists in a Reuters poll, though a lot of them said that incumbent Janet Yellen would be the best option. The Fed will probably need to raise rates in December and then three or four times "over the course of next year", assuming US unemployment continues to fall and inflation rises, Boston Fed President Eric Rosengren said on Monday.

Gold is highly sensitive to rising US interest rates, as they increase the opportunity cost of holding non-yielding bullion, while boosting the greenback.

Catalonia refused on Tuesday to bow to the Spanish government's demand that it renounce a symbolic declaration of independence, setting it on a political collision course with Madrid later this week.

However, the brokerage house believes that the host of economic data sets released in the United States in recent times indicate that the dollar Index might possibly change its direction from weakness to strength, which could halt the pace at which gold prices rise.

Higher US interest rates tend to boost the dollar and push up bond yields, putting pressure on greenback-denominated gold.

In other precious metals, silver was flat at $17 an ounce after touching its lowest in more than a week. Platinum for next January went down 10.20 dollars, or 1.09 percent, to settle at 924.60 dollars per ounce.

Share

Advertisement

Related Posts

The Kraft Heinz Company (NASDAQ:KHC) Undervalued by 14.1%
Susquehanna Bancshares Inc reiterated a "hold" rating on shares of The Kraft Heinz in a report on Tuesday, August 1st. Equities research analysts expect that The Kraft Heinz Company will post $3.24 EPS for the current fiscal year.

Sneak Peek of Netflix's "Bright" Starring Will Smith
Then, it seemed like all of New York City was trying to stop and kill them? Oh, and make it L.A. instead of NYC. Splashigans, I can admit that when I see Will Smith's name attached to a project, lately I'm pessimistic.

Why Traders Are Chasing Regal Entertainment Group (RGC), Celgene Corporation (CELG)
The Company is the parent company of Regal Entertainment Holdings, Inc. 29 funds opened positions while 75 raised stakes. This buyback authorization permits the company to reacquire up to 2.2% of its shares through open market purchases.

AmEx's Stephen Squeri to succeed Chenault as CEO, chairman
AmEx must continue to combat heightened competitive pressure, especially in the U.S. Chenault, 66, will retire as its chairman and chief executive next year.

Judge might throw out emolument clause lawsuit against Trump
Constitution by accepting foreign payments through his hotels and other businesses should be able to proceed with their lawsuit. Attorneys for the Department of Justice argued on President Trump's behalf that the case should be dismissed.

First Data Corporation (FDC) Position Lifted by California Public Employees Retirement System
Insiders contain to comply with strict disclosure requirements with regard to the sale or purchase of the shares of their company. In the most updated research from a number of analysts on Wall Street, the company gets 23 Buys and 0 Sell among 34 analysts.

National Teen Driver Safety Week: 'The haunting reality of teen driving'
There are three categories: best overall campaign, greatest improvement in seat belt usage, and highest seat belt use rate. Do not forget to lead by example, and make sure they know what the consequences of their actions could be.

Real Madrid 1-1 Tottenham: Spurs stars rated and slated
Madrid created some very good chances in the second half but Spurs defended resolutely, and deservedly picked up a point. The hosts were beginning to pile on the pressure in the second-half.

American Express tops Street 3Q forecasts
Jane Street Group Llc increased Proshares Tr (Put) (URTY) stake by 23,800 shares to 28,900 valued at $3.78 million in 2017Q2. On average, equities analysts forecast that American Express will post $5.74 earnings per share for the current fiscal year.

The Hype Behind Costco Wholesale Corporation (COST), Old National Bancorp (ONB)
Almanack Investment Partners LLC. acquired a new stake in Costco Wholesale Corporation in the second quarter worth about $101,000. The stock of Costco Wholesale Corporation (NASDAQ:COST) has "Equal-Weight" rating given on Friday, October 6 by Morgan Stanley.

© 2015 ExpressNewsline. All Rights reserved.