Gold: Gold is flat after last session pulls back from 1.5-month high

0
Gold prices were flat on Monday after cutting gains in the previous session on US Federal Reserve chief Jerome Powell’s comment that inflation could slow next year and the central bank was on track to start cutting stimulus.

FUNDAMENTALS

* Spot gold was little changed at $ 1,792.95 an ounce at 1:48 am GMT. US gold futures fell 0.1% to $ 1,793.70.

* The metal hit its highest level since early September on Friday before slashing gains following comments from Fed Chairman Jerome Powell on the cut.

* Powell said it was not time for the Fed to raise interest rates, especially since employment was still low.

* Gold is often seen as a hedge against inflation, although lower stimulus and higher interest rates push up government bond yields, resulting in a higher opportunity cost. high for holding bullion that earns no interest.

* Treasury Secretary Janet Yellen said on Sunday that the United States is not losing control over inflation and that inflation could return to normal by the second half of next year.

* Putting pressure on gold, the dollar stabilized after its biggest weekly loss in more than a month. A stronger dollar makes bullion less attractive to buyers holding other currencies.

* Speculators reduced their net long positions in gold in the week to October 19, US Commodity Futures Trading Commission data showed on Friday.

* Market players are now eyeing the Bank of Japan and European Central Bank (ECB) meeting on Thursday. Neither central bank is expected to change policy, but market indicators suggest higher inflation than the ECB forecast.

* Spot silver was flat at $ 24.31 an ounce. Platinum rose 0.1% to $ 1,041.26 an ounce and palladium gained 0.7% to $ 2,035.77.

DATA / EVENTS (GMT, Oct) 0800 Germany Ifo Business climate New


Source link

Share.

Comments are closed.