Gold’s fall continues on sixth day ahead of Fed meet, US inflation data | World News
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Non-yielding bullion is considered a safe investment and thrives in a low interest rate environment. | Photo: Shutterstock
Gold extended losses for a sixth straight session on Wednesday to hover near the two-week lows hit the day before on lowered expectations of deeper rate cuts, as traders turned their focus to the Federal Reserve’s meeting minutes and inflation data.
Spot gold fell 0.2 per cent to $2,616.71 per ounce by 0903 GMT, having touched its lowest level since Sept. 20 on Tuesday. US gold futures for December delivery was steady at $2,635.20.
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“The precious metals sector seems somewhat disappointed after yesterday’s meeting by China’s National Development and Reform Commission, which reignited concerns about growth and demand from China in Q4. Also, gold is confronting the possibility of less aggressive rate cuts,” Zain Vawda, market analyst at MarketPulse by OANDA, said.
Non-yielding bullion is considered a safe investment and thrives in a low interest rate environment.
China is the world’s largest consumer of gold, although record high prices and worries about economy have dampened consumer sentiment. A rebound in gold prices to a record peak also dashed the Indian bullion industry’s expectations of a lucrative festival season. [GOL/AS]
Even after the losses, gold prices are set for an over 25 per cent rise this year after prices hit a record peak of $2,685.42 on Sept. 26.
“The market is currently awaiting the upcoming inflation data for US Since last week’s payroll data, the market is discussing if we are in soft landing or no landing scenario,” UBS analyst Giovanni Staunovo said.
The minutes from Fed’s September policy meeting are due at 1800 GMT, while the US Consumer Price Index (CPI) and Producer Price Index (PPI) data is due on Thursday and Friday, respectively.
“A significant rise in inflation could alter the scenario. However, considering the geopolitical situation and market uncertainties, we might continue to see range-bound trading with limited downside rallies,” said Vawda.
In other metals, spot silver lost 0.2 per cent to $30.64 per ounce. Platinum rose 0.1 per cent to $951.26 and palladium fell 0.5 per cent to $1,016.86.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 09 2024 | 4:26 PM IST
