Gold prices rebounded in anticipation of the Fed's decision

13.09.2016

On Tuesday, gold prices rose for the first time in five sessions, as investors continue to assess the prospects of raising interest rates in the US in the near future amid the recent comments of officials.

Elsewhere, on the Comex division of the New York Mercantile Exchange, at 12:50 GMT, gold futures for December delivery rose $ 2.25, or 0.17%, and was traded at $ 1327.85. A day earlier, futures fell $ 8.90, or 0.67%.

On Monday, a representative of the Federal Reserve, Lael Brainard, warned about the risks of a premature increase in interest rates. The comments came after on Friday, Boston Fed President, Eric Rosengren, said that low interest rates increase the likelihood of overheating the US economy.

According to the forecast related to the Fed rate, the likelihood of a rate increase this month is 15%.   

The precious metal is sensitive to the rate increase in the US because its growth deprives investors of income from investments in gold, contributing to the strengthening of the dollar, the gold being expressed in USD.

In addition, on the Comex, copper futures rose 0.6 cents, or 0.29%, to $ 2.106 per pound, as investors digested the latest economic reports in China.

China's industrial production and retail sales rose in August more than expected, easing concerns about the health of the second largest economy in the world.

Industrial production increased in annual terms by 6.3% in August, exceeding the growth forecasts by 6.1%.

Retail sales also exceeded expectations, increasing by 10.6% after rising 10.2% the previous month, while the volume of investment in fixed assets grew by 8.1% last month, more than the expected increase by 8.0%.

China is the world's largest consumer of copper, accounting for almost 45% of world consumption last year.

Silver was traded at $ 18.997 an ounce, compared with $ 19.06 at the closing of Monday trading, platinum was at $ 1038.00 compared to $ 1053.80, and palladium - $ 651.97 versus $ 660.50.

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