Moneycontrol Be a Pro
Get App
Last Updated : Sep 11, 2015 08:05 AM IST | Source: Reuters

Gold firms near $1,110 but poised for third weekly drop

Spot gold was little changed at USD 1,111 an ounce by 0025 GMT, after gaining 0.5 percent in the previous session.


Gold clung to small overnight gains near USD 1,110 an ounce on Friday, but the metal was headed for a third consecutive weekly fall as investors continued to fret over the timing of a looming US interest rate hike.


FUNDAMENTALS


* Spot gold was little changed at USD 1,111 an ounce by 0025 GMT, after gaining 0.5 percent in the previous session.

Close

* Earlier in the week, gold had fallen to USD 1,101.11, the lowest since Aug. 11. It has lost 1 percent for the week.


* US gold GCcv1, also headed for a third weekly dip, was trading at USD 1,110.40.


* Traders were awaiting the Federal Reserve's next policy statement on Sept. 17 for clues on the timing of a US interest rate rise, before taking any big positions in gold.


* Concerns over slowing growth in China, mixed economic data and volatility in financial markets have increased uncertainty about the timing of a US rate increase, which had been expected as early as this month.


* Data on Thursday showed the US labour market appeared to gain momentum in early September as fewer Americans filed for weekly unemployment benefits, but weak inflation pressures may complicate the Fed's decision whether to raise interest rates.


* Bullion has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding bullion while holding the dollar in check. But expectations that rates will rise soon have pushed the metal down 6 percent this year.


* BNP Paribas SA revised its gold price forecast for 2015 on Thursday, citing strength in the US dollar and concerns over the Chinese economy. The bank cut its price forecast by USD 15 to USD 1,145 per ounce in 2015.


* The London Metal Exchange is in talks with the gold industry with a view to launching precious metals derivatives, LME Chief Executive Garry Jones said on Thursday.


MARKET NEWS


* Asian shares rose on Friday thanks to gains on Wall Street, while the dollar steadied after facing pressure from a rallying yuan and US data that offered no clarity on whether the Fed might raise interest rates next week.



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 11, 2015 08:05 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant