Gold heads for first weekly gain in three as Fed hurts dollar | Reuters
By Marcy Nicholson and Peter Hobson | NEW YORK/LONDON NEW YORK/LONDON Gold rose on Friday and was on course for its first weekly gain in three as the U.S. Federal Reserve's cautious message on interest rates left the dollar .DXY around five-week lows, making bullion cheaper those holding other currencies.The Fed raised U.S
By Marcy Nicholson and Peter Hobson
| NEW YORK/LONDON
NEW YORK/LONDON Gold rose on Friday and was on course for its first weekly gain in three as the U.S. Federal Reserve's cautious message on interest rates left the dollar .DXY around five-week lows, making bullion cheaper those holding other currencies.The Fed raised U.S. rates on Wednesday, as expected, but its earlier forecast of three rate increases this year remained unchanged, disappointing some investors who had hoped for hints of a possible fourth hike in 2017.Spot gold XAU= was up 0.2 percent at $1,229.40 an ounce by 2:53 p.m. EDT (1853 GMT), taking this week's gain so far to 2.1 percent. Prices hovered just below the Thursday session high, when the metal reached $1,233.13, its highest since March 6.It rallied 2.3 percent on Wednesday and Thursday following the Fed's statement."Everything's quieted down today. The surge we've seen in the last couple of days has been correlated with what we've seen in bonds and stocks," said Rob Haworth, senior investment strategist for U.S. Bank Wealth management in Seattle.
"On the retail side, you're making enough money on stocks that you're probably not as worried about jumping back into gold."U.S. gold futures GCcv1 settled up 0.3 percent at $1,230.20. "There is momentum as people start to look again how far they can push gold higher," said Georgette Boele at ABN AMRO.
The dollar had hit a ceiling and would fall further in the near term, she said.U.S. President Donald Trump's failure so far to push through promised economic stimulus measures may have influenced the Fed, said Tom Kendall at ICBC Standard Bank."If infrastructure spending and tax cuts are being pushed further and further out, it gives the Fed more reason to be cautious," he said. "That is a bit of a vacuum that gold can rally into."
Rate rises lead to higher bond yields, which increase the opportunity cost of holding non-yielding bullion and tend to boost the dollar, in which gold is priced.Investors were also looking ahead to the Group of 20 (G20) finance leaders' meeting in Germany this weekend, where any attempt by the Trump administration to pursue protectionist policies could fuel demand for gold as a safe-haven. Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares (GLD), fell 0.28 percent on Thursday, the first outflow this week.Silver XAG= was up 0.5 percent at $17.37 an ounce, while platinum XPT= gained 0.3 percent to $956.20. Palladium XPD= advanced 1.7 percent to $776.90, after rising to $779.30, it highest since March 1. (Additional reporting by Nallur Sethuraman in Bengaluru; Editing by David Goodman and Nick Zieminski)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.