Gold holds losses as US consumer confidence boosts US dollar
[MELBOURNE] Gold held its losses after tumbling the most in a month as US consumer confidence rose to a nine-year high, boosting the US dollar.
Bullion for immediate delivery was slightly lower at US$1,326.61 an ounce as of 10:07am in Melbourne, according to Bloomberg generic pricing. The metal fell 0.8 per cent Tuesday, the most since Aug 30, after US consumer confidence jumped in September on optimism about the labour market, according to a report from the New York-based Conference Board.
Better economic data will strengthen the case for the Federal Reserve to raise US interest rates this year, curbing the attraction of gold against interest-bearing assets. Traders are pricing in an almost 50 per cent chance that US policy makers will increase rates by December.
Gold fell "after a jump in US confidence saw the USD strengthen and investor demand fall," Australia & New Zealand Banking Group Ltd analysts said Wednesday in a note.
The US dollar spot index advanced as much as 0.4 per cent Tuesday and was again higher in early Asian trade.
Bullion also declined as Democratic nominee Hillary Clinton saw her odds of winning the US presidency rise after the first televised debate with Republican Donald Trump. Citigroup Inc has said a Trump win in November could spur volatility in gold.
Spot silver was little changed, while platinum gained and palladium fell.
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 settles higher on supply concerns in the Mid-East, economic woes subdue gains
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply