Breaking News
0

Gold Down; Market Stuck at $1,220 Level Awaiting Next Big Catalyst

CommoditiesNov 08, 2018 03:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. No big volatility seen in gold until December Fed decision.

Investing.com - Forget big volatility in gold futures for now.

With the end of the U.S. midterm elections and ahead of the December decision on interest rates by the Federal Reserve, the yellow metal is likely to hover between $1,220 and $1,240 per ounce.

"Until the next big catalyst or shoe drops on us, we're stuck at these levels, I think," said Tom Beller, market strategist with oversight for precious metals at RJO Futures in Chicago.

Gold has firmly held above the $1,200 per troy ounce level critical to the psyche of market bulls since September, helped partly by its position as safe haven to the US-China trade war and other troubles.

In Thursday's session, Comex gold for December delivery traded in a tight band of less than $8 in Thursday's session, moving from a session low of $1,221 to a high of $1,228.40 a troy ounce, before settling down $3.60 at $1,225.10.

Traders cited the stronger dollar as one reason for gold's slide. The dollar index, measured against a basket of six currencies, was up 0.7% at 96.50 by 3:30 PM ET (2030 GMT) after the Fed left U.S. short-term interest rates unchanged at its November monthly meeting on Thursday.

The U.S. central bank is expected to approve a quarter-point hike in rates at its December meeting, though, marking the fourth such increase for the year.

As for the language in its closely-watched policy statement, it noted that the unemployment rate "has declined" since its September meeting where the headline jobless level was at a 1969-low of 3.7%. But it also noted that the "growth of business fixed investment has moderated from its rapid pace earlier in the year."

As of Thursday, fed funds futures showed the odds for a rate hike in December standing at nearly 76%.

Still, with the gridlock expected in Washington after Tuesday’s midterm vote, talk is building that President Donald Trump's pro-growth policies may stall and that the Fed may actually refrain from a December hike. If that happens, gold could see an outsize build, some analysts say.

Gold Down; Market Stuck at $1,220 Level Awaiting Next Big Catalyst
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email