Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Gold prices down in Asia as market looks to Friday key events

Published 05/25/2016, 07:15 PM
Updated 05/25/2016, 07:16 PM
© Reuters.  Gold drifts lower in Asia

Investing.com - Gold prices eased in Asia on Thursday with the market looking ahead to comments from Fed Chair Janet Yellen and U.S. GDP data at the end of the week.

On the Comex division of the New York Mercantile Exchange, gold for June delivery fell 0.09% to $1,222.75 a barrel.

Silver futures for July delivery rose 0.12% to $16.280 a troy ounce. Copper futures for July delivery were flat at $2.103 a pound.

Overnight, gold fell to fresh 7-week lows on Wednesday, extending sharp losses from the previous session, as investors continued to stake their bets on a summer interest rate hike by the Federal Reserve.

Investors are looking to an appearance by Fed chair Janet Yellen at week's end at Harvard University for further indications on the timing of the Federal Open Market Committee's (FOMC) first interest rate hike in 2016.

In two rare public appearances this spring, Yellen has largely maintained a dovish stance that the Fed will raise rates gradually in the current cycle, amid widespread volatility in global financial markets and persistently low inflation.

As well, the U.S. Census Bureau reports its second estimate for first quarter GDP on Friday morning, analysts expect to see a 0.4% increase from initial forecasts, amid possible upward revisions in consumption expenditures and business fixed investment.

Analysts also anticipate that the GDP Price Index will remain steady at 0.7%. In addition, the University of Michigan is expected to report a slight decline in consumer sentiment to 95.5, after the flash reading surged by almost 7 points to 95.8, its strongest level in more than a year.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The CME Group's (NASDAQ:NASDAQ:CME) Fed Watch tool indicated on Wednesday that there is a 31.9% chance the FOMC will raise rates in June, near the high end of estimates from earlier this week.

Some analysts appear concerned that the FOMC could delay a potential rate hike until after a controversial referendum on the U.K.'s status in the European Union on June 23. When the FOMC meets again in July, there is now a 45.7% that the committee will raise rates, up from 15.0% last month. Any rate hikes by the Fed this year are viewed as bearish for gold, which struggles to compete with high-yield bearing assets in rising rate environments.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.