Gold edged lower in Asian on Thursday as upbeat US economic data bolstered the possibility of the Federal Reserve raising interest rates next month and beyond. Spot gold was down 0.1 percent at $1,276.95 per ounce at 0746 GMT, slipping from Wednesday's 3-1/2-week high of $1,289.09. US gold futures for December delivery dipped 0.1 percent to $1,276.70.
Gold has traded within a tight range of about $24 for the month of November. "It is a combination of Fed rate hike (expectations) and equity market volatility. There are increasing risks in the market now," said Argonaut Securities analyst Helen Lau. "Views around these two countering forces could keep gold flat in the short term," she added.
Underlying US consumer prices increased in October, strengthening the view that a recent disinflationary trend worrying the Fed probably had ended. Spot gold remains neutral in a range of $1,270-$1,286 per ounce, and a break of that trading band could suggest a change in direction, according to Reuters technical analyst Wang Tao.
Comments
Comments are closed.