Gold Rises As Fed Might Delay Taper

Gold fluctuated near the highest level in more than three weeks as investors weighed speculation that the Federal Reserve may delay a reduction in stimulus until next year against signs of slowing demand in China.
Bullion for immediate delivery lost 0.2 percent to $1,337.55 an ounce by 1:57 p.m. in Singapore after climbing 0.2 percent. Prices touched $1,344.85 yesterday, the highest since Sept. 30. Gold for December delivery lost 0.4 percent to $1,337.20 an ounce on the Comex in New York.
Gold is set for the first annual drop since 2000 as some investors lost faith in the metal as a store of value and on expectation the Fed will slow its $85 billion monthly bond purchases as the economy improves. U.S. employers added 148,000 workers in September from a revised 193,000 gain in August, the Labor Department said yesterday. The median of forecasts by 93 economists in a Bloomberg survey was an increase of 180,000.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza