- MarketPulse - https://www.marketpulse.com -

Gold Steady Around $1230 as U.S. Growth Assessed

Gold traded below the highest level in 12 weeks as investors gauged the impact of plunging commodities prices on global growth and inflation against the outlook for U.S. interest rates.  Bullion for immediate delivery increased 0.1 percent to $1,229.53 an ounce at 9:25 a.m. in Singapore, according to Bloomberg generic pricing. The metal rose yesterday to $1,244.51, the highest price since Oct. 23, before ending 0.2 percent lower amid the slump in raw materials.

Oil and copper prices at the lowest in 5 1/2 years are threatening to push inflation further below the Federal Reserve’s 2 percent target and spurring speculation the central bank may hold back from raising rates. Fed Bank of Philadelphia President Charles Plosser said previous asset purchases will help the central bank achieve its goal. The European Central Bank may buy bonds as early as next week to fight deflation amid concern Greece may exit the currency bloc.

Bullion is “benefiting from risk aversion in other markets on global growth concerns,” Li Zibo, an analyst at Beijing Capital Futures Co., wrote in a note. “Further out, we still believe that a stronger dollar driven by differentiation in U.S. and Europe monetary policies will put gold on the defensive.”

Bloomberg [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.


Latest posts by marketpulsefxstaff (see all [4])