Gold dipped slightly
on Monday after a three-day rally, but the metal still held close its
highest in nearly three weeks, as the Federal Reserve's move last
week to leave US interest rates unchanged weighed on global equities.
FUNDAMENTALS
* Spot gold dipped
0.2 percent to USD 1,137.20 an ounce by 0051 GMT, after gaining 0.7
percent on Friday. The metal had climbed to USD 1,141.50 in the
previous session, its highest since September
* The Fed kept
interest rates unchanged on Thursday in a bow to worries about the
global economy, financial market volatility and sluggish inflation at
home. It left open the possibility of modest rate rises later this
year.
* A majority of Wall
Street's top banks now expect the Fed to begin increasing rates in
December, according to a Reuters poll conducted on Thursday after the
Fed's policy decision. * Stocks on major markets slipped on Friday
and bond prices rose, pushing yields sharply lower, and helping
safe-haven gold.
* Stocks and
currencies in emerging markets, which are more vulnerable to higher
US interest rates, briefly welcomed the Fed's decision to postpone an
interest rate rise, but their bounce faded with the persistent
sell-off in developed markets.
* The decision to
not hike rates last week is positive for non-interest-paying gold,
which could see demand drop with higher rates. But with the Fed
expected to hike rates before the end of the year, gold's gains could
be limited.
* Hedge funds and
money managers slashed their net long position in COMEX gold to a
five-week low and cut a bullish silver stance for the first time in
six weeks in the week ended Sept. 15, US Commodity Futures Trading
Commission data showed on Friday.
* Russia's gold
reserves rose to 42.4 million troy ounces as of Sept. 1, compared
with 41.4 million troy ounces a month earlier, the central bank said
on Friday.
Read more - Mcx Bullion tips
No comments:
Post a Comment