Gold futures are still struggling to find direction amid the Federal Reserve rate hike outlook. Several Fed officials said in remarks on Monday the US central bank should raise its Fed funds rate yet this year.
“Investors don’t want to fight the Fed, and they are keeping gold off the radar”, said George Gero, senior vice president with RBC Capital Market Global Futures.
Gold futures declined for the second consecutive day in the U.S. on Tuesday, with last week’s rally running out of steam amid a recovery in the dollar.
Bullion for immediate delivery traded at $1,134.07 an ounce at 11:22 a.m.in Singapore from $1,133.44 on Monday, when prices lost 0.5 percent, according to Bloomberg generic pricing.
“Persistent dollar strength will hamper the precious complex, whilst the timing of the first Fed interest rate rise will also add to the uncertainty and continued volatility”, said MKS Group trader James Gardiner. The reason why platinum fell because of this is due to the fact that platinum is used to filter out the emissions in those diesel-powered vehicles.
An rate of interest hike will doubtless be applicable this yr given the USA central financial institution’s determination final week to face pat was a “shut name”, Fed policymaker John Williams stated on Saturday.
Gold failed to see a safe-haven boost from a dip in equities.
As for other precious metals, Comex silver for December settlement was last down 46.6 cents or 3.1 percent at $14.755 per ounce. This basically meant that the Federal Reserve is going to be raising the interest rates within the next few months, but it is still not certain whether October will be the month or whether it will be December.
“The correction of the last couple of days has run its course, and gold is resuming the upswing that started back in July”, said Colin Cieszynski, chief market strategist at CMC Markets. It looks more likely that the decision will again be more of a last-minute decision based on what happens coming up with the Chinese economic situation, and whether or not the economy in China gets better or worse.