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Last Updated : Sep 12, 2019 06:38 PM IST | Source: Reuters

Gold holds steady; all eyes on Fed meeting

Gold was steady around USD 1,642 an ounce on Wednesday, underpinned by stronger equities, but investors were also looking for hints of another round of quantitative easing when the US Federal Reserve ends of its two-day meeting.


Gold was steady around USD 1,642 an ounce on Wednesday, underpinned by stronger equities, but investors were also looking for hints of another round of quantitative easing when the US Federal Reserve ends of its two-day meeting.

The Fed will release a statement outlining its views on policy and the economy at around 1630 GMT, when it is expected to reiterate its intent to keep benchmark US interest rates near zero through 2014, which could boost gold's safe-haven appeal.

FUNDAMENTALS

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* Spot gold hardly moved at USD 1,642.29 an ounce by 0018 GMT, having risen as high as USD 1,648.91 o n Tuesday as the Dow and the S&P 500 jumped following strong earnings and upbeat outlooks from big manufacturers.

* Argentina added to its gold reserves in September 2011 as the price began to retreat from record highs, the International Monetary Fund and government officials said on Tuesday, reporting the country's first such purchase in six years.

* US gold futures for June were at USD 1,643.30 an ounce, down 0.03%.

* Price volatility could spike ahead of Wednesday's May COMEX options expiry, as both call and put options investors look to profit from heavy bets at the USD 1,650 strike price. There are currently around 10,000 lots in calls and around 30,000 contracts in puts at the popular price, traders said.

* The biggest Dutch opposition parties refused on Tuesday to back austerity cuts needed to meet EU budget targets after the government fell, deepening the crisis in a nation probably facing a long period of uncertainty until elections.

MARKET NEWS

* Japan's Nikkei share average gained 1.2% on Wednesday after a run of strong UScorporate results, including earnings from Apple Inc, but market players said any gains were likely to be capped ahead of key central bank meetings this week.

* The dollar slipped against the euro on Tuesday after data suggesting US home pated positions ahead of weekly inventory reportsrices may be stabilizing spurred investors to seek higher returns beyond US borders.

* Brent crude prices fell and US crude edged up o n T Tuesday, narrowing the spread between the two benchmarks, while weak gasoline futures weighed on the complex as market participants rotated positions ahead of weekly inventory reports.

DATA/EVENTS (GMT)

1230 US Durable goods Mar

1630 US FOMC rate decision

2100 N.Zealand Cen Bank Interest Rate

2300 S.Korea GDP growth yy Q1

US Build permits R chg mm Mar

PRICES

Precious metals prices 0018 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1642.29 0.56 +0.03 5.02

Spot Silver 30.85 0.06 +0.19 11.41

Spot Platinum 1545.49 6.29 +0.41 10.95

Spot Palladium 664.03 0.50 +0.08 1.77

COMEX GOLD JUN2 1643.30 -0.50 -0.03 4.88 1187

COMEX SILVER MAY2 30.83 0.08 +0.26 10.42 465

Euro/Dollar 1.3201

Dollar/Yen 81.44

COMEX gold and silver contracts show the most active months

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First Published on Apr 25, 2012 08:42 am
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