Gold dips towards 1-month minimum ahead of Fed gathering
On Tuesday, gold kept extending its losses from the previous session during European trade, going down towards a one-month minimum, as market participants readjusted their trading positions ahead of the Fed’s two-day monetary policy gathering due to start later this day.
As a matter of fact, the Fed isn’t supposed to take action on interest rates at the conclusion of its gathering on Wednesday, though market participants are on the verge of scrutinizing its policy statement for new hints as for the timing of interest rate lifts within the next several months.
In New York, December delivery gold futures sank 0.18%, being worth $1,324.80 per troy ounce. Yesterday, the given commodity dipped to a session minimum of $1,311.10 per troy ounce, just higher a one-month minimum of $1,310.70, as renewed hopes for a Federal Reserve rate lift later this year drove the greenback.
A recent string of better than expected American data revived rumors that the Fed is going to lift interest rates before the end of 2016. Currently, interest rate futures are pricing in a 52% chance of a rate lift by December, compared to less than 20% the previous week and up from 9% at the beginning of this month.