PRECIOUS-Gold hits 1-week low on dollar bounce, mixed signals from Fed officials
Spot gold was down 0.2% to $1,777.03 per ounce by 0249 GMT, after hitting its lowest since June 21 at $1,770.36 earlier in the session. U.S. gold futures shed 0.2% to $1,774.80.
“The jury’s still out (on the Fed’s timeline on tapering),” said IG Market analyst Kyle Rodda.
“On one hand, we’ve to think about normalizing policy, but on the other, a lot of Fed speakers are suggesting inflation will be transitory, so we don’t need the Fed to slam on the brakes. And, that is kind of sending mixed signals.”
Gold prices rose as much as 0.8% on Friday after data showed the U.S. personal consumption expenditures price index, the Fed’s preferred inflation measure, came in below expectations.
Minneapolis Fed President Neel Kashkari said he expected recent high inflation readings would not last.
The dollar rebounded from Friday’s lows, making gold expensive for holders of other currencies.
The market is trading in a range and until gold breaks above $1,800 or below $1,760, it’s just looking like a sideways trend in the short term, Rodda said.
Investors were also keeping a close watch on the negotiations over an U.S. infrastructure deal.
Silver was steady at $26.07 per ounce, palladium rose 0.1% to $2,640.31. Platinum eased 0.7% to $1,103.40.
Source: Reuters
