Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Gold prices lower in Asia with China markets shut, Fed minutes eyed

CommoditiesOct 05, 2015 10:34PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Gold dips in Asia - Gold fell in Asia on Tuesday with markets in China shut for holidays and attention on Federal Reserve minutes from the September meeting this week.

On the Comex division of the New York Mercantile Exchange, gold for December delivery eased 0.17% to $1,135.70 a troy ounce.

Silver for December delivery dropped 0.62% to $15.610 a troy ounce, while copper for December delivery eased 0.47% to $2.347 a pound.

Overnight, gold futures inched down on Monday amid a relatively flat dollar, as a wave of disappointing economic indicators exacerbated fears of a global recession.
The poor readings come in the wake of a downbeat U.S. national employment report on Friday, which bolstered dovish sentiments for a delayed interest rate hike by the Federal Reserve.

The Institute of Supply Management reported on Monday morning that its non-manufacturing purchasing index dipped to 56.9 in September from a level of 59.0 the previous month. It also fell below consensus estimates of a 58.0 reading. Following two consecutive months of stellar reports over the summer, the September report was dragged down by weakness in business activity and new orders. In July, the index surged to a 59.6 level, its strongest reading in 18 years.

Separately, there are signs that growth in the services sector is decelerating after the Services Purchasing Managers' Index fell to 55.1 last month, below consensus expectations of a 55.8 reading. Within the report, there were signs of weakness in growth in new orders and production overall. In addition, the daily spending habits of Americans were virtually unchanged last month according to Gallup's U.S. Consumer Spending Measure for September. During the month, American consumers averaged about $88 per day, just below an $89 average in August.

On Friday morning, the U.S. Department of Labor's Bureau of Labor Statistics said non-farm payrolls for the month of September increased by 142,000, significantly below consensus estimates from analysts of a 203,000 gain. The figure also fell well below low end of estimates of a 180,000 increase. The unemployment rate remained steady at 5.1%, while the labor participation rate declined by 0.2% to 62.4%.

The subdued data dampened optimism for an imminent rate hike by the Fed over the next several months. Following the Federal Open Market Committee's September meeting, Fed chair Janet Yellen sent strong indications that the U.S. central bank could raise short-term rates by the end of the year if the economy and labor market continued to show improvement.

An interest rate hike is viewed as bearish for gold, which struggles to compete with high-yield bearing assets in rising rate environments.

Gold prices lower in Asia with China markets shut, Fed minutes eyed

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Sign up with Email