News Column

Gold Ends Flat Ahead Of Fed Monetary Policy

July 28, 2014



WASHINGTON (Alliance News) - Gold futures ended flat on Monday, as investors await the US Federal Reserve's monetary policy later this week, while continuing to monitor the escalating violence in Libya, and the uncertainties in Gaza and Ukraine.

Investors await the Federal Reserve's monetary policy announcement later in the week for cues on when the Fed might raise interest rates. Any weakness in global equity markets due to geopolitical concerns also appear to be supporting the yellow metal.

It is almost universally expected the Fed will reduce its quantitative easing program by another USD10 billion, dropping the size of the asset purchasing program down to USD25 billion per month, on track to be fully wound down in October.

In some disappointing economic news, a report from the National Association of Realtors on Monday showed pending home sales in the US to have pulled back unexpectedly in June, after reporting a sharp jump in the previous month.

Gold for August delivery, the most actively traded contract, ended flat to close at USD1,303.30 an ounce on the Comex division of the New York Mercantile Exchange on Monday.

Gold for August delivery scaled an intraday high of USD1,309.40 and a low of USD1,301.10 an ounce.

On Friday, gold futures ended higher, snapping a three-session losing streak, on weak global equity markets and worries over the Ukraine situation.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 801.84 from its previous close on Monday.

The dollar index, which tracks the US unit against six major currencies, traded at 81.00 on Monday, down from its previous close of 81.04 late Friday in North American trade. The dollar scaled a high of 81.05 intraday and a low of 80.98.

The euro traded higher against the dollar at USD1.3441 on Monday, as compared to its previous close of USD1.3431 late Friday in North American trade. The euro scaled a high of USD1.3444 intraday and a low of USD1.3428.

In economic news from the US, a report from the National Association of Realtors on Monday showed pending home sales index dropped 1.1% to 102.7 in June after surging up by 6% to 103.8 in May. Economists expected sales to increase by another 0.5%.

A pending home sale is one in which a contract is signed but not closed. Normally, it takes four to six weeks to close a contracted sale.

The Fed will be out with its latest rate call on Wednesday, the highlight of a busy week that also includes the July non-farm payrolls report and US GDP figures.



For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Alliance News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters