Gold soars in Asia ahead of Fed decision on rates

Gold soars in Asia ahead of Fed decision on rates

On Wednesday, gold edged up moderately in Asia, with the Federal Reserve generally expected to officially announce a quarter point lift in interest rates, although the language on 2018 is considered to be decisive for the number one precious metal.

In New York, February delivery gold futures rallied 0.28% being worth $1,245.20 a troy ounce.

Overnight, the yellow metal was still at five-month minimums amid dollar strength that followed an improving inflationary environment. Meanwhile, a widely anticipated Fed interest rate lift kept weighing on gold.

An improving inflationary environment that could potentially encourage the major US bank to adopt a tighter rate-hike cycle next year underpinned the evergreen buck, thus suppressing gold.

On Wednesday, the Labor Department told that the previous month its producer price index for final demand edged up 0.4%. For the last 12 months through August, the PPI tacked on 3.1% having soared 2.8% in October.

Similar

Popular

Greenback descends versus yen

On Thursday, the evergreen buck was just a touch lower versus the Japanese yen after reaching an eight-week peak overnight…

Gold is at 5-month minimums on stronger greenback

On Friday, gold dived to five-month minimums because optimism as for the US tax reform overhaul kept underpinning demand for the US dollar ahead of the highly-anticipated American nonfarm payrolls report to be released a bit later in the day…

Gold descends on profit-taking in Asia

On Monday, gold sank on profit-taking in Asia because market participants are closely watching the evergreen buck for potential further dives closely connected with a more gentle than anticipated rate lift path by the key US bank in 2018 after gloomy…

promotions you can be interested in

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera