Gold Steady Near $1,200 as Interest Rate Outlook Boosts Dollar

PT. Equityworld Futures - Gold prices traded little changed slipped as prospects for the first U.S. interest rate increase since 2006 helped to push the dollar to a one-month high. Silver and palladium declined.

Federal Reserve Chair Janet Yellen said she expects to raise rates this year if the economy meets her forecasts. Inflation is moving toward the Fed’s 2 percent target, with a report on Friday showing that core consumer prices climbed 0.3 percent in April, the biggest gain in more than two years. While a pickup in inflation can boost demand for bullion as a hedge, higher borrowing costs cut the allure of the metal, which generally provides returns only through price gains.

Bullion for immediate delivery rose less than 0.1 percent to close at $1,206.60 an ounce at 5 p.m. New York time, Bloomberg generic pricing showed. The metal dropped 1.5 percent last week, the most since the period to April 24.

Gold futures for August delivery gained 0.2 percent to $1,207.60 an ounce on the Comex in New York. Aggregate trading was 70 percent below the 100-day average for this time, according to data compiled by Bloomberg.

The Bloomberg Dollar Spot Index, a gauge of the greenback’s strength against 10 major counterparts, rose as much as 0.2 percent to the highest since April 27. The measure advanced 2.6 percent last week, the most since September 2011.

Silver for immediate delivery climbed 0.4 percent to $17.1775 an ounce. Platinum added 0.5 percent to $1,151.75 an ounce, while spot palladium fell 0.2 percent to $788.70 an ounce.

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Gold Trims Biggest Weekly Drop Since April Before Inflation Data

PT. Equityworld Futures - Gold advanced to reduce a weekly loss as mixed U.S. economic reports clouded the outlook for when the Federal Reserve will boost interest rates.

Bullion for immediate delivery rose 0.2 percent to $1,207.09 an ounce at 10:11 a.m. in Singapore after falling 0.4 percent on Thursday, according to Bloomberg generic pricing. The metal is set to decline 1.5 percent this week, the most since the period to April 24. Gold in Shanghai dropped.

The metal climbed to a three-month high on Monday before retreating as data showed that while jobless claims fell to a 15-year low, manufacturing remains tepid. Minutes of a Fed meeting signaled borrowing costs won’t be raised in June and growth may pick up after stalling in the first quarter. Inflation figures for April are due on Friday, when Fed Chair Janet Yellen is scheduled to speak.

Policy makers are monitoring labor market progress as part of their dual mandate, which includes an inflation target. The four-week average for jobless claims decreased to 266,250 in the period ended May 16 from 271,750, according to the Labor Department on Thursday. The Markit Economics preliminary May manufacturing index fell to the lowest since January 2014.

The consumer price index may show a 0.1 percent rise on the month after a 0.2 percent gain in March, according to a Bloomberg survey. Price increases excluding food and fuel slowed to 1.7 percent year-on-year from 1.8 percent in March.

Gold for June delivery added 0.2 percent to $1,206.30 an ounce on the Comex. Bullion of 99.99 percent purity fell 0.4 percent to 240.81 yuan a gram ($1,208.56 an ounce) on the Shanghai Gold Exchange, extending a weekly loss.

Silver for immediate delivery fell 0.1 percent to $17.1385 an ounce, set for the first weekly drop in four. Platinum was little changed at $1,154.11 an ounce, while palladium increased 0.1 percent to $781 an ounce.

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U.S. Stocks Fluctuate Near Record as Data Show Inflation Pickup

PT. Equityworld Futures - U.S. stocks fluctuated, with the Standard & Poor’s 500 Index near a record, after data showed the fastest rise in consumer prices in two years.

The S&P 500 Index slipped 0.2 percent to 2,126.73 at 9:35 a.m. in New York, after closing Thursday at a record. Markets are closed Monday for the Memorial Day holiday.

A report Friday showed the cost of living excluding food and fuel rose at a faster pace than expected in April, indicating inflation is inching toward the Fed’s goal. Fed Chair Janet Yellen is due to discuss the outlook for the economy at 1:00 p.m., as mixed economic reports have prompted investors to push back estimates for when the Fed will begin raising rates, helping to drive equities to all-time highs.

The core consumer-price index climbed 0.3 percent, the biggest gain since January 2013, according to the Labor Department. The median forecast of economists surveyed by Bloomberg called for a 0.2 percent advance.

Reports Thursday showed sales of existing homes in April unexpectedly dropped, after the March pace was the strongest in almost two years. A series of factory reports yesterday indicated the industry remains tepid this month against a backdrop of weaker global growth and a strong dollar.
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Gold Futures Decline on U.S. Inflation Data, Fed Rate Outlook

PT. Equityworld Futures - Gold futures fell as rising U.S. consumer prices signaled an approach to the Federal Reserve’s inflation target, boosting prospects for the first interest-rate increase since 2006.

The cost of living excluding food and fuel rose at a faster pace than expected in April, government data showed Friday. Fed policy makers have indicated they are watching inflation and the job market to help determine when to lift borrowing costs. The dollar extended a rally against a basket of 10 currencies after Fed Reserve Chair Janet Yellen said she expects a rate increase this year if the economy meets her forecasts.

On the Comex in New York, gold futures fell less than 0.1 percent to settle at $1,204 an ounce at 1:49 p.m. The metal declined 1.7 percent this week.

Higher rates drive investors to favor assets that pay interest, including new bonds, curbing the appeal of gold, which generally offers returns only through price gains.

Sumber : www.ewfpro.com