News Column

Gold Stays Above USD1,300 As Focus Shifts To Fed, Jobs

July 28, 2014

WASHINGTON (Alliance News) - Gold prices are slightly higher Monday morning as investors gear up the Federal Reserve's monetary policy announcement later in the week.

With traders on edge waiting for the latest clues on when the Fed might raise interest rates, slight weakness in global equity markets due to geopolitical concerns appears to be supporting the yellow metal.

It is almost universally expected the Fed will reduce quantitative easing by another USD10 billion, dropping the size of the asset purchasing program down to USD25 billion per month. QEUR3 would remain on track to be fully wound down in October.

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 today, Markit's US service sector data and pending home sales from industry watcher the National Association of Realtors are due later this morning.

Gold futures for December are up USD2.20 or 0.17% at USD1,307.50 an ounce.

On Friday, gold futures ended up USD12.50 or 1.0% at USD1,303.30 an ounce, snapping a three-session losing streak, thanks to weak global equity markets and on worries about the situation in Ukraine. However, for the week, gold lost about 0.5%.

Silver for September is up USD0.046 or 0.22% at USD20.682 an ounce. Meanwhile, copper is up USD0.004 or 0.12% at USD3.244 per pound.

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Source: Alliance News

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