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Gold rises but remains under $1,200 on stronger dollar

Published 12/19/2014, 02:54 AM
Updated 12/19/2014, 02:54 AM
© Reuters. Gold holds below $1,200 level on U.S. rate hike expectations

Investing.com - Gold prices rose on Friday, be remained just below the $1,200 threshold as the dollar strengthened on expectations for a U.S. rate hike in 2015.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.38% to $1,199.30.

The February contract ended Thursday's session up only 0.03% to $1,194.80 an ounce.

The dollar continued to benefit from the Federal Reserve's latest policy statement. On Wednesday, the Fed said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."

The central bank acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.

The greenback was also boosted after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending December 12 fell by 6,000 to 289,000 from the previous week’s revised total of 295,000.

Economist had forecast an increase of 1,000.

However, a separate report on Thursday showed that manufacturing activity in the Philadelphia-region slowed in December after expanding at the fastest rate since December 1993 last month

The Federal Reserve Bank of Philadelphia said its manufacturing index came in 24.5 at this month, down from 40.8 in November. Economists had forecast a decline to 26.6.

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Elsewhere in metals trading, silver for March delivery inched up 0.05% to $15.945 a troy ounce, while copper futures for March delivery rose 0.39% to $2.865 a pound.

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