News Column

Gold Holds Near USD1,280 On Murky Rate Hike Outlook

August 25, 2014

WASHINGTON (Alliance News) - Gold prices are little changed Monday morning with after a rally in European equity markets demonstrated appetite for riskier assets.

Gold futures for December are down USD0.40 or 0.03% at USD1,279.80 an ounce, still hovering around a 9-week low, on a strong dollar and amid speculation the US Federal Reserve might hike rates sooner than anticipated earlier.

On Friday, gold futures ended up USD4.80 or 0.4% at USD1,280.20 an ounce, snapping a five-day losing streak, after Federal Reserve Chair Janet Yellen's remarks at the Jackson Hole Symposium gave no indication about the timing of a rate hike. However, for the week, the bullion lost about 2%.

Yellen, who said that rate hikes could come sooner than expected if the US economic recovery is sustained, also stated that improvement in labor market conditions has been overstated.

Also speaking at the Jackson Hole Symposium last Friday, European Central Bank President Mario Draghi the bank may come out with more stimulus in the event of a further drop in inflation.

Silver futures for December are up USD0.014 or 0.07% at USD19.473 an ounce. Meanwhile, copper is up USD0.016 or 0.47% at USD3.239 per pound.

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Source: Alliance News

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