Gold steady, but rate hike views could dampen appeal

Updated : August 24, 2018 06:55 AM IST

Spot gold was up 0.1 percent at $1,186.35 an ounce at 0058 GMT, after falling about $10 on Thursday.

Federal Reserve policymakers broadly agree that US interest rates should rise further this year and next, despite US President Donald Trump's displeasure with such a plan, two policymakers' comments underscored on Thursday.

The Fed's latest policy meeting minutes suggested it is on course to raise interest rates further after two hikes this year, denting demand for non-interest-yielding gold.

Gold prices held firm on Friday, after falling nearly 1 percent in the previous session and sentiment for the yellow metal remained negative amid an outlook for rising US interest rates.

Fundamentals

Spot gold was up 0.1 percent at $1,186.35 an ounce at 0058 GMT, after falling about $10 on Thursday.

US gold futures were down 0.1 percent at $1,192.40 an ounce.

The Fed's latest policy meeting minutes suggested it is on course to raise interest rates further after two hikes this year, denting demand for non-interest-yielding gold.

Markets are awaiting Fed Chairman Jerome Powell's comments on Friday at the central bank's annual meeting in Jackson Hole, Wyoming for any change in its interest rate stance, especially after US President Donald Trump's attack on its monetary policy this week.

US and Chinese officials ended two days of talks on Thursday with no major breakthrough as their trade war escalated with activation of another round of tariffs on $16 billion worth of each country's goods.

The number of Americans filing for unemployment benefits fell last week but sales of new single-family homes unexpectedly declined in July.

The dollar was steady against a basket of six major currencies, at 95.656, after rising 0.6 percent on Thursday.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.19 percent to 767.23 tonnes on Thursday from Wednesday.

South African precious metals producer Sibanye-Stillwater swung to a half-year profit, bolstered by the inclusion of its US platinum operations and higher platinum group metals basket price.

Published : August 24, 2018 06:55 AM IST

Gold steady, but rate hike views could dampen appeal

You May Also Like

India's COVID-19 active cases breach 11-lakh mark for first time, record daily high of 1,52,879

Mcap of four of 10 most valued companies jump over Rs 1.14 lakh crore

Ranchi-based start-up Puresh Daily raises Rs 1.2 crore seed fund

Trending on CNBC-TV18

recommended for you