Gold rebounds after U.S. durable goods data hits dollar | Reuters
NEW YORK/LONDON Gold rebounded on Tuesday after weaker-than-expected U.S. durable goods data knocked the dollar to a session low against the euro, but prices remained hemmed into a narrow range as a two-day Federal Reserve policy meeting began. Spot gold XAU= was up 0.3 percent at $1,241.66 an ounce at 2:08 p.m
NEW YORK/LONDON Gold rebounded on Tuesday after weaker-than-expected U.S. durable goods data knocked the dollar to a session low against the euro, but prices remained hemmed into a narrow range as a two-day Federal Reserve policy meeting began.
Spot gold XAU= was up 0.3 percent at $1,241.66 an ounce at 2:08 p.m. EDT (1808 GMT), while U.S. gold futures GCv1 for June delivery settled up 0.3 percent at $1,243.40 an ounce.
The Fed, which will release its post-meeting statement at 2 p.m. EDT on Wednesday, is expected to hold interest rates steady, but traders will be watching for changes to its assessment of the U.S. economy, which could point to more rate increases later in the year.
Economists expect a Fed increase in June, with another by year-end. But interest rate futures show less conviction, underscoring the gap between markets and policymakers on the trajectory of rates.
"Our economists are looking for rates to remain unchanged (this week)," Standard Chartered analyst Suki Cooper said.
"We think risks are rising for the Fed to maintain a dovish view, and that's going to set quite a positive background for gold prices," she said. "If we get a hawkish tint in the statement, and the physical market remains weak, I can see prices falling towards $1,200 before they start to pick up."
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
The metal is up 17 percent this year so far, chiefly on expectations that the Fed would hold off raising rates further after its first increase for nearly a decade in December.
"I don't believe the Federal Reserve's going to raise interest rates in the next several months," said Stephen Kalayjian, chief market strategist of KnowVera.
"Between the bullish technical factors and the underpinnings of the Federal Reserve not looking to raise interest rates, I think it's the perfect scenario for gold to trade higher in the months ahead."
Supporting gold, the dollar .DXY fell as much as 0.7 percent against a currency basket after orders for long-lasting U.S. manufactured goods rebounded less than expected in March, suggesting the downturn in the factory sector was far from over. [FRX/]
Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares (GLD), fell on Monday. [GOL/ETF]
Silver XAG= was up 0.5 percent at $17.07 an ounce, platinum XPT= was up 0.4 percent at $1,015.14, and palladium XPD= was down 0.04 percent at $600.75.
(Additional reporting by A. Ananthalakshmi in Singapore; editing by David Evans, Louise Heavens and Marguerita Choy)
This story has not been edited by Firstpost staff and is generated by auto-feed.
AUKUS is a big deal in Indo-Pacific architecture, and it will complement, not diminish the importance of Quad
It is obvious that China's military aggressiveness, bullying of the nations in Indo-Pacific necessitated a response, and the 'historic' security alliance is aimed at mitigating the challenges
SC slams Centre for 'cherry-picking' names for tribunals, directs govt to make appointments in two weeks
There are around 250 posts lying vacant in various key tribunals and appellate tribunals
The new security alliance is likely to be seen as a provocative move by China, which has repeatedly lashed out at Joe Biden as he's sought to refocus US foreign policy on the Pacific