- ``Gold is on a waiting see-saw for now,'' analyst says
- Fed-fund futures show 30 percent chance rates rise this year
Gold was little changed after reaching a one-week low as investors awaited signals on whether the Federal Reserve will boost interest rates this year.
Fed-fund futures show just a 30 percent chance that rates will increase by December, while analysts at Goldman Sachs Group Inc. said the Fed will probably raise interest rates by the end of the year with a further 100 basis points of increases over 2016. Higher rates curb the appeal of gold because it doesn’t offer interest or yields.
Bullion gained last week to the highest in more than three months as slackening economies from China to Europe eased speculation that the Fed will soon tighten monetary policy. Reports this week showing a buoyant U.S. housing market have revived concern among some investors that the Fed will consider the economy strong enough to withstand higher rates. Policy makers meet next week and again in December.
“Gold is looking for leadership,” said George Gero, a vice president of global futures at RBC Capital Markets in New York. “The Fed will not be the Grinch that stole Christmas, so gold is on a waiting see-saw for now.”
Gold futures for December delivery slid 0.1 percent to $1,166.10 an ounce at 1:52 p.m. on the Comex in New York, after touching $1,161.40 an ounce, the lowest since Oct. 13.
The metal fell earlier as a surge in the dollar pared demand for the metal as an alternative asset.
Holdings in exchange-traded products backed by gold climbed for the eighth time in nine sessions, according to data compiled by Bloomberg as of Wednesday. Assets increased 0.3 metric tons to 1,545.3 tons, the highest since July 24.
Silver futures for December delivery rose 0.8 percent to $15.837 an ounce. On the New York Mercantile Exchange, platinum futures for January delivery added 0.6 percent to $1,012.90 an ounce, and palladium futures for December delivery climbed 1.2 percent to $685.60 an ounce.