https://www.miningweekly.com

Fed spells relief for gold traders worried over rate-hike pace

14th December 2017

By: Bloomberg

  

Font size: - +

NEW YORK – Spot gold headed for the biggest gain in three weeks after Federal Reserve officials stuck with a projection for three interest-rate increases in the coming year, easing concerns that quickening economic growth would spur an even faster pace of monetary tightening.

By a 7-2 vote, the Fed on Wednesday raised the benchmark lending rate by a quarter percentage point, its third hike this year. In a statement following a two-day meeting, the Federal Open Market Committee omitted prior language saying it expected the labor market would strengthen further.

“Gold moved up in its initial reaction because Fed is dovish in terms of a rate hike vision for 2018, and it sees only three rate hikes, not four,” Naeem Aslam, chief market analyst at TF Global Markets in London, said in a note.

After surging through much of the first nine months of 2017, gold is on course for its worst quarter in a year. Demand for the metal as a haven has languished amid surging equity markets and improving economic data, which boosted expectations that the Fed would tighten monetary policy this month. Higher rates make bullion less competitive against interest-bearing assets.

Gold for immediate delivery advanced 0.7% to $1 252.67/oz at 2:30 p.m. New York time. A close at that price would mark the biggest gain since November 22.

“It’s hawkish on rates, but it is to be expected,” Bob Haberkorn, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “There were two members that dissented. That’s supportive for gold bulls.”
 

Edited by Bloomberg

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.078 0.11s - 90pq - 2rq
Subscribe Now