Gold Little Changed Near 8-Month Low as Fed Ends MeetingDebarati Roy and Nicholas Larkin
Gold futures traded little changed near an eight-month low in New York as investors waited for the outcome of the Federal Reserve’s policy meeting to gauge the outlook for borrowing costs.
The U.S. central bank concludes its meeting today as officials consider the timing of interest-rate increases. Rising borrowing costs trim the appeal of bullion as a hedge against inflation. Gold is heading for the first quarterly loss this year partly as the dollar jumped to a 14-month high against a basket of 10 major currencies this week.
“All eyes are on the Fed, and the gold market is worried about a rate hike coming sooner than expected,” Tom Power, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “The sentiment is bearish.”
Gold futures for December delivery rose less than 0.1 percent to $1,236.80 an ounce at 11:18 a.m. on the Comex in New York. Prices fell to $1,226.30 on Sept. 15, the lowest for a most-active contract since Jan. 9. Trading was 43 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg show.
In 2013, gold halted a 12-year rally as the Fed prepared to reduce monetary stimulus. Policy makers reduced monthly bond purchases to $25 billion on July 30, the sixth cut of $10 billion since November.
Holdings in gold-backed exchange-traded products fell 6.2 metric tons to 1,707.5 tons yesterday, the lowest since October 2009, data compiled by Bloomberg show.
Silver futures for delivery in December fell 0.2 percent to $18.685 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for delivery in October retreated 0.3 percent to $1,363.80 an ounce. Palladium futures for delivery in December fell 0.9 percent to $836.50 an ounce.