Gold & Silver

Gold inches up as dollar slips ahead of Fed rate hike decision

Reuters | Updated on January 16, 2018 Published on December 14, 2016

gold

Gold prices edged higher in Asian trade on Wednesday on a weaker dollar and as markets waited for the outcome of the US Federal Reserve’s policy meeting later in the day.

Spot gold was up 0.2 per cent at $1,159.66 an ounce by 0035 GMT. US gold futures were 0.2 per cent higher at $1,161.20 per ounce.

The dollar index, which measures the greenback against a basket of currencies, was down 0.1 per cent at 100.990.

The Fed is widely expected to hike US interest rates at this week’s Federal Open Market Committee meeting.

The outcome of the policy meeting will be announced at 1900 GMT, followed by Chair Janet Yellen’s news conference half-an-hour later.

Asian shares followed Wall Street higher on Wednesday, with markets certain the Fed will raise rates for the first time in a year but less sure what it might signal for policy in 2017.

US import prices recorded their biggest drop in nine months in November on declining petroleum costs, with renewed dollar strength threatening to keep imported inflation subdued.

ICE Futures US says it will begin trading a new gold daily futures contract at the start of trading for trade date on January 30, 2017.

Newmont Mining Corp had said on Tuesday it is likely to record a non-cash impairment charge of between $1 billion and$1.2 billion in the fourth quarter related to an increase in the estimated cost of closing down its Yanacocha gold mine in Peru.

Published on December 14, 2016
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