NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

PRECIOUS-Gold holds overnight gains after Fed keeps rates steady

Published 12/12/2019, 03:28
Updated 12/12/2019, 03:36
© Reuters.  PRECIOUS-Gold holds overnight gains after Fed keeps rates steady
XAU/USD
-
XAG/USD
-
GC
-
SI
-
GLD
-
XPD/USD
-

Dec 12 (Reuters) - Gold prices on Thursday hovered near a

one-week high hit in the previous session, as the dollar nursed

its steepest losses in weeks after the U.S. Federal Reserve

stood pat on interest rates and signalled moderate economic

growth for next year.

FUNDAMENTALS

* Spot gold XAU= was largely unchanged at $1,474.71 per

ounce, by 0217 GMT. In the previous session, the bullion hit

$1,478.80, its highest since Dec. 5.

* U.S. gold futures GCcv1 were up 0.3% at $1,479.10.

* Gold prices gained 1% on Wednesday, after the Fed held

interest rates steady and signalled borrowing costs will not

change anytime soon, with moderate economic growth and

historically low unemployment expected to persist through the

2020 presidential election. * The dollar fell to a four-month low after the central

bank's announcement, making gold cheaper for holders of other

currencies. USD/

* Lower interest rates reduce the opportunity cost of

holding bullion and weigh on the dollar.

* Traders are bracing for a series of make-or-break events

over the next few days that have the potential to cause huge

swings in financial markets for months to come.

* On the trade front, U.S. President Donald Trump is

expected to meet top advisers on Thursday about tariffs on

nearly $160 billion in Chinese consumer goods set to kick off on

Dec. 15, three sources familiar with the plans said.

* Investors were also focused on Christine Lagarde's first

meeting of the European Central Bank later in the day.

* In the UK, voters will go to the polls in an election that

will pave the way for Brexit under Prime Minister Boris Johnson

or propel Britain towards another referendum that could

ultimately reverse the decision to leave the European Union.

* Palladium XPD= rose 0.1% to $1,911.84 an ounce. Plagued

by supply deficit, the autocatalyst metal notched an all-time

high of $1,917.50 earlier in the session.

* The metal surpassed $1,900 for the first time ever on

Tuesday as mines across South Africa shut down after flash

flooding triggered the most severe power blackouts in more than

a decade, threatening a key export sector. * Holdings of the world's largest gold-backed

exchange-traded fund SPDR Gold Trust GLD rose 0.03% to 886.22

tonnes on Wednesday. * Elsewhere, silver XAG= was up 0.2% at $16.89 per ounce,

while platinum XPT= fell 0.2% to $936.60.

DATA/EVENTS (GMT)

0700 Germany HICP Final YY Nov

0745 France CPI (EU Norm) Final MM, YY Nov

1200 India Industrial Output YY Oct

1245 EU ECB Refinancing & Deposit Rates Dec

1300 Russia GDP YY Quarterly Revised Q3

1330 US Initial Jobless Claims weekly

1330 Germany Press conference following the governing council

meeting of the ECB in Frankfurt

1700 US The Federal Reserve releases quarterly financial

accounts of the United States

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.