Gold advances with central bank policies in focus, US dollar drops
[SINGAPORE] Gold rebounded after Friday's sell-off as investors focus on monetary policy meetings in Japan and the US.
Bullion for immediate delivery advanced as much as 0.5 per cent to US$1,255.03 an ounce and was at US$1,254.44 by 9:24 am in Singapore, according to Bloomberg generic pricing. The metal lost 1.8 per cent on Friday after stocks and other riskier assets surged as investors reassessed European Central Bank President Mario Draghi's economic stimulus measures.
The MSCI Asia Pacific Index climbed 0.9 per cent Monday, while a gauge of the US dollar fell for a fourth day, helping demand for bullion by making it less expensive in other currencies.
Gold has jumped 18 per cent this year on the back of demand for haven assets amid volatile equity markets. Investors now turn their attention to central banks for more signals on monetary policies. The Bank of Japan, which surprised with a move to negative interest rates in January, begins a two-day meeting Monday while the Federal Reserve meets March 15-16.
The futures market is implying only a 4 per cent chance of the Fed raising rates this month, with the odds of a June rate hike at about a coin flip. Higher rates reduce the appeal of gold, which doesn't pay interest.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil jumps, equities fall as Iran blasts fan Middle East tensions
Gold set for fifth weekly gain as geopolitical risks buoy demand
Oil holds near 3-week low as US sanctions interrupt easing tensions
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
BP reshapes its leadership team as some executives leave
BHP to decide on future of nickel business by August, trims met coal estimates