On Tuesday, gold increase humbly in Asia with a focus on the minutes of meeting from the Fed’s September board meeting later this month and policymaker speeches in attention.
A day before, the yellow metal increase $8.50, or 0.68%, as investors returned to the market to search for inexpensive valuations after futures grieved their worst one week show since September 2013.
On Tuesday, gold prices were slightly higher during Europe’s session, but resisted to move away from previous week’s four month declines during indications the Federal Reserve is getting ready to hike interest rates in the approaching months.
Delivery of gold for December on the Comex division of the NYMEX add on $1.55, or 0.12%, to trade at $1,262.05 a troy ounce by 3:20AM ET (07:20GMT).
On Monday, there was no floor trading on the Comex because of the Columbus Day holiday in the U.S. All electronic deals will be scheduled with Tuesday’s trades for settlement.
On Friday, gold prices fell to $1,243.20, a level not met since June 7, as unsatisfactory U.S. employment data was seen as improbable to adjust the Federal Reserve’s plan for increasing interest rates before the end of the year.
The U.S. economy added 156,000 jobs the previous month, decline from an increase of 167,000 in August, while the job loss rate marked up to 5.0%, the Labor Department stated on Friday. Market analysts had anticipated 176,000 new jobs and the jobless rate to hold at 4.9 percent.
In spite of the uninspiring report, the strike was not anticipated to prevent the Federal Reserve from increasing interest rates later this year. The markets are currently pricing in a 69.5% possibility of a rate hike at December’s meeting, according to the reports.
Gold is sensitive to moves in U.S. rates, which boost the opportunity cost of holding non yielding assets such as bullion.
In the week onward, market participants will be turning their focus to Wednesday’s minutes of the Federal Reserve’s September policy meeting for fresh clues on the scheduling of the next U.S. rate increase.
U.S. retail sales data will also be in the limelight, as investors try to measure if the world’s biggest economy is strong enough to endure an increase in borrowing costs before the year end.
Furthermore, there are a handful of Fed speakers on tap, including Chair Janet Yellen, as traders look for more indications on the probability of a December rate hike.
The scheduling of a Fed rate hike has been a continuous source of debate in the markets in recent months.
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