Gold prices extended losses on Wednesday, extending losses to near a two-week low as expectations for deeper interest rate cuts faded, while traders turned their attention to the minutes of the U.S. Federal Reserve meeting and upcoming inflation data.
Gold bars are displayed at the GoldSilver Central office in Singapore June 19, 2017. Photo: Reuters
At 16:03 Vietnam time, spot gold fell 0.2% to $2,616.71 an ounce, after hitting its lowest since September 20 in the previous session. US gold futures for December delivery were steady at $2,635.20 an ounce.
"The precious metals sector appears to be disappointed after yesterday's meeting of China's National Development and Reform Commission, which raised concerns about growth and demand from China in the fourth quarter. Additionally, gold is facing the possibility of a less aggressive rate cut," said Zain Vawda, market analyst at OANDA's MarketPulse.
Gold, an asset that does not provide immediate returns, is often considered a safe investment and thrives in a low-interest-rate environment.
China is the world’s largest gold consumer. However, record high gold prices and economic concerns have dampened consumer sentiment. The rally to record highs has also dampened hopes of a bumper festive season for the Indian gold industry.
Despite the decline, gold prices are still expected to rise more than 25% this year, after hitting a historic peak of $2,685.42 an ounce on September 26.
“The market is now waiting for the upcoming US inflation data. Since last week’s jobs data, the market has been discussing whether we are in a soft landing,” said UBS analyst Giovanni Staunovo.
The minutes of the Fed's September policy meeting will be released at 1 a.m. on Thursday, while the US Consumer Price Index (CPI) and Producer Price Index (PPI) data are scheduled to be released on Thursday and Friday, respectively.
"A significant rise in inflation could change the picture. However, given the current geopolitical backdrop and market uncertainties, we are likely to continue to see range-bound trading with few sharp spikes or drops," Vawda said.
In other precious metals, spot silver fell 0.2% to $30.64 an ounce. Platinum edged up 0.1% to $951.26 an ounce, while palladium fell 0.5% to $1,016.86 an ounce.
Dung Phan (According to RT)
Source: https://www.congluan.vn/da-giam-cua-vang-keo-dai-den-ngay-thu-sau-truoc-du-lieu-lam-phat-cua-fed-va-my-post316161.html
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