Thursday, 26 November 2015

Gold near multi-year lows as U.S. data supports rate hike view

Gold hovered close to its lowest in nearly six years on Thursday, as the dollar held at multi-month highs and U.S. economic data reinforced market expectations of an interest rate hike this year.
* Spot gold was little changed at $1,070.80 an ounce by 0031 GMT, after dropping 0.4 percent on Wednesday. The metal had fallen to $1,064.95 last week, the lowest since February 2010.
* Data on Wednesday showed that U.S. manufacturing output rose well above economists' expectations in October, while business spending plans surged. New applications for unemployment benefits dropped last week.
* Though other data showed only a small increase in U.S. consumer spending in October, it did little to alter views that the economy was strong enough for the Federal Reserve to raise rates at its next policy meeting in December.
* Higher rates would dent the appeal of non-interest-paying bullion, while boosting demand for the dollar.
* The dollar climbed to its highest in eight months against a basket of major currencies on Wednesday on the robust U.S. data.
* A stronger greenback makes dollar-denominated gold expensive for holders of other currencies.
* Gold had seen some safe-haven bids earlier in the week after Turkey downed a Russian fighter jet, stoking tensions between the two countries, but have faded since as investors fretted over the U.S. rate hike.
* Asian shares advanced in early trade on Thursday, while growing bets the European Central Bank was gearing up to deliver further stimulus steps kept the euro under pressure.
No major data on tap for Thursday. U.S. markets shut for Thanksgiving holiday.

Marketmagnify provide tips and advices to our clients by sms/calls/chat. We have dedicated team of analysts and we are providing reliable and valuable tips on stock, commodities. We believe in our customer satisfaction by giving them successful results.We provide high accurate Mcx Tips at very reasonable price to help small traders and investors to make decent money. Fill OUR FREE TRIAL We cover all types of services all segment.

No comments:

Post a Comment