PRECIOUS-Gold perks up after Fed minutes but gains capped by trade optimism

PRECIOUS-Gold perks up after Fed minutes but gains capped by trade optimism

Reuters  | Oct 09, 2019 14:27

PRECIOUS-Gold perks up after Fed minutes but gains capped by trade optimism

* Most Fed policymakers believed 25 bps cut needed- Sept. minutes

* U.S.-China trade talks set to start Thursday in Washington

* Turkey launches military operation in northeast Syria (Updates prices, adds details)

By Swati Verma

Oct 9 (Reuters) - Gold eked out gains on bets of further U.S. Federal Reserve rate cuts following the release of minutes from the central bank's September policy meeting on Wednesday, but hopes of a Sino-U.S. trade deal buoyed risk sentiment and capped bullion's gains.

Spot gold XAU= was up 0.2% at $1,507.52 per ounce by 02:10 p.m. EDT (1810 GMT). U.S. gold futures GCcv1 settled up 0.6% at $1,512.80 an ounce.

"The fact is that the Fed is adding a significant amount of liquidity to the market and they are increasing the money supply and that in my opinion is why gold is firmer today," said David Meger, director of metals trading at High Ridge Futures.

Fed Chairman Jerome Powell on Tuesday flagged openness to further rate cuts to fend off global economic risks and said the Fed would "soon announce measures to add to the supply of reserves over time." minutes showed most Fed policymakers supported the need for an interest rate cut in September. bullion's gains, stocks rose as media reports raised hopes of progress in trade talks between the United States and China. MKTS/GLOB

High-level talks involving Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are planned for Thursday and Friday. do have some light optimism on the trade front. However, when everybody steps away, they realise that the real chances of a trade deal, even partial, are small at best," High Ridge Futures' Meger said.

A Bloomberg report on Wednesday said China was still open to agreeing to a partial trade deal with the United States, citing an official with direct knowledge of the talks. the Brexit front, EU officials denied on Wednesday that Brussels was preparing a major concession to Britain to secure a deal. on the radar were other major geopolitical developments, with Turkey launching a military operation against Kurdish fighters in northeast Syria on Wednesday. are lingering geopolitical matters that have many traders and investors looking to the safe-haven metals as an investment," Jim Wyckoff, senior analyst with Kitco Metals, wrote in a note.

Silver XAG= was up 0.3% at $17.77 an ounce, while platinum XPT= rose 0.2% to $891.73.

Palladium XPD= gained 0.3% to $1,680 an ounce. Prices had risen to $1,691.34 an ounce earlier, hovering just below last week's record peak.

"Palladium is likely to stay in a wide deficit. Likely firm demand from the automotive sector will help keep the market tight," James Steel, chief precious metals analyst at HSBC wrote in a note.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+