News Column

Gold Hugs USD1,300 Ahead Of Fed, GDP

July 30, 2014

WASHINGTON (Alliance News) - Gold prices are little changed Wednesday morning as traders look ahead to the US GDP data and the Federal Reserve's monetary policy statement.

With the focus on Fed's impending statement, traders are treading cautiously, refraining from significant moves. The Fed is widely expected to reduce its asset purchases by another USD10 billion, cutting its monthly asset buying program to USD25 billion.

Traders will be looking for clues about the timing of monetary tightening by the Fed. Earlier this month, the Fed Chairman Janet Yellen had indicated that a rate hike may happen sooner than anticipated if the labor market sees a sustained recovery.

Meanwhile, conflicts in Ukraine and the Middle East continue unabated. The US and EU have reportedly imposed more sanctions on Russia, condemning its support to Ukrainian separatists.

According to reports, Israeli forces have attacked a U.N. school in northern Gaza this morning, killing about 15 Palestinians.

Gold futures for December are up USD0.40 or 0.03% at USD1,300.90 an ounce.

Silver for September is up USD0.035 or 0.17% at USD20.618 an ounce. Meanwhile, copper is down USD0.004 or 0.11% at USD3.215 per pound.

Traders are also looking ahead to the report on private sector employment from ADP, due for release at 8:15 am ET, and the Commerce Department's report on US second quarter GDP, due at 8:30 am ET.

Economists expect the US economy grew 3% in the second quarter, snapping back from a dreadful winter.

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Source: Alliance News

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