Tag Archives: futures

Gold Futures Fall a Second Day as Dollar Gains After Fed Minutes

Gold futures declined for a second day as the dollar strengthened on expectations U.S. policy makers are moving closer to raising interest rates.

 

The Bloomberg Dollar Spot Index headed for the highest close since March 2009 on the outlook for Japan to extend a stimulus program and after minutes of the Federal Reserve’s Oct. 28-29 meeting showed the U.S. moving toward higher interest rates. Many officials said the Fed should remain attentive to evidence of a possible downward shift in longer-term inflation expectations, according to the minutes released yesterday.

 

Higher borrowing costs cut the allure of the metal which generally offers investors returns through rising prices and which is sometimes bought as an inflation hedge. Prices had also dropped before the Fed minutes were released as a poll yesterday showed Swiss voters will reject an initiative that would require the nation’s central bank to boost bullion holdings.

 

Gold for December delivery fell 0.4 percent to $ 1,189.10 an ounce by 9:36 a.m. London time on the Comex in New York. It reached a three-day low of $ 1,173.90 yesterday. Bullion for immediate delivery added 0.6 percent to $ 1,189.74 in London, according to Bloomberg generic pricing.

 

Source : Bloomberg

 


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Gold Futures Trade Below Two-Week High as Fed to Buying Weighed

Gold futures traded little changed below a two-week high as investors weighed expectations for higher U.S. interest rates against signs of more physical buying.

 

The Bloomberg Dollar Spot Index traded near a five-year high on the outlook for Japan to extend a stimulus program and after minutes of the Federal Reserve’s Oct. 28-29 meeting showed the U.S. moving toward higher interest rates. Higher borrowing costs cut the allure of the metal which generally offers investors returns through rising prices and which is sometimes bought as an inflation hedge.

 

Gold for December delivery was little changed at $ 1,192.20 an ounce by 7:14 a.m. on the Comex in New York. Prices, which reached a three-day low yesterday, touched a two-week high of $ 1,204.10 on Nov. 18. Bullion for immediate delivery rose 0.8 percent to $ 1,192.44 in London, according to Bloomberg generic pricing.

 

Source : Bloomberg


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Dollar at 7-Year High Versus Yen, S&P 500 Futures Drop After Fed

The dollar climbed, rising to its strongest level in more than seven years versus the yen. U.S. equity-index futures retreated with Australian shares, while nickel advanced as Indonesia reiterated a ban on ore exports.

The greenback added 0.6 percent to 118.5 yen by 3:23 p.m. in Tokyo, after touching its highest level since Aug. 10, 2007. Standard & Poor’s 500 Index futures lost 0.2 percent after the U.S. measure retreated from a record. Australia’s S&P/ASX 200 Index fell to its lowest close in a month as miners tumbled with iron ore prices. Nickel climbed 1.1 percent in London.

The Bank of Japan yesterday maintained record stimulus after the economy slipped into recession while in the U.S., Federal Reserve policy makers discussed how to communicate the pace of interest-rate increases after they lift off zero. China’s flash purchasing managers’ index from HSBC Holdings Plc and Markit Economics fell to 50, the borderline between expansion and contraction and the lowest in six months. Iron ore slumped to a five-year low as China’s economy slows.

Japan’s currency weakened as much as 0.6 percent to 118.71 per dollar today, and slipped to 148.94 per euro, the least since October 2008. The Topix index finished little changed with the Nikkei 225 Stock Average. Yields on Japan’s two-year notes neared negative levels.

Source : Bloomberg


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