Gold stuck in ” no man’s land”

Gold’s stuck in no man’s land with ordnance flying overhead. Prices hugged close to the $1,200 an ounce level that’s been the norm since late August as investors await another rate rise from the Federal Reserve and signals about the outlook, including an assessment of risks from the trade war.

Gold’s stuck in no man’s land with ordnance flying overhead. Prices hugged close to the $1,200 an ounce level that’s been the norm since late August as investors await another rate rise from the Federal Reserve and signals about the outlook, including an assessment of risks from the trade war.

Bullion for immediate delivery was at $1,200.18 an ounce at 8:09 a.m in London, according to Bloomberg generic pricing. That’s little changed from Tuesday’s close, and within the less-than-$30 intraday range that’s held for the past month. It’s 7.8 percent lower in 2018, with two Fed hikes this year.

Gold has been becalmed in recent weeks as investors grew accustomed both to the well-flagged likelihood of further rate rises from the U.S. central bank, as well as the bruising trade conflict between Washington and Beijing, which has fanned demand for the dollar. While the commodity has lost ground this year as exchange-traded holdings fell, the pace of losses has leveled off. After Wednesday’s decision by the policy-setting Federal Open Market Committee — at which investors largely expect another quarter-point rise in borrowing rates — Chairman Jerome Powell will hold a media conference on the outlook

“Since even the most astute G-10 traders are struggling for dollar direction, gold remains mired in no-man’s-land, smack dab in the middle of the well-worn $1,190-$1,210 range,” Stephen Innes, Singapore-based head of Asia Pacific trading with Oanda Corp., said in note. He added: “The focus will fall on the Fed’s forward guidance and Fed Chair Jay Powell’s press conference.”

Bloomberg

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes