Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By BullionVault.com (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Gold Prices Bounce from Comex Sell-Off as Fed Looks to 3x Rate Hikes in 2018

Monday, November 13, 2017 8:04

% of readers think this story is Fact. Add your two cents.

Adrian Ash is head of research at BullionVault, the world-leading gold trading & ownership service online…

GOLD PRICES traded in a narrow $5 range above last week’s close on Monday morning in London as expectations held firm for a US Fed rate hike next month and the British Pound dropped amid fresh doubts over Prime Minister Theresa May’s leadership, writes Steffen Grosshauser at BullionVault.

Gold prices climbed to $1279 per ounce after posting its biggest daily decline in three weeks in Friday’s session, falling below the 100-day moving average as the US Comex futures and options exchange saw heavy selling concentrated in 10 minutes.

Monday’s bounce in non-yielding bullion prices were limited, however, against a strengthening US Dollar and a further rise in the rate of return offered by US Treasury bonds.

Market expectations now see a 96.7% certainty of a Federal Reserve rate rise to a ceiling of 1.50% at the meeting 1 month from today, up from 82.7% this time in October.

“A higher yield tends to increase the cost to carry gold, and we had a little uptick in the yield curve slope,” says Bart Melek, head of commodity research at Toronto Dominion Bank.

Philadelphia Fed President Patrick Harker meantime said today he expects the US central bank to raise rates at their meeting next month, with a further 3 increases likely next year unless inflation in the cost of living retreats.

US lawmakers said over the weekend that President Trump’s tax-cut proposals face heavy debate and challenges between now and the New Year.

“We don’t see much movement in gold prices in the next one or two months,” reckons Richard Xu, a fund manager at China’s biggest gold exchange-traded fund HuaAn Gold.

“In lieu of major developments, it is difficult to see gold finding the support necessary for a move back toward $1300 over the near-term,” agrees Swiss refiner MKS Pamp’s trader Sam Laughlin.

Gold for UK investors rallied by £10 on Monday, back towards last Wednesday’s 3-week highs at £980 per ounce, as Sterling was battered by nearly 1% on the currency market after The Sunday Times reported that 40 members of Parliament from Prime Minister Theresa May’s Conservative Party have agreed to sign a letter of no-confidence in her ability to push for the Brexit deal she has proposed.

While the Pound’s weakness supported Britain’s FTSE100 Index, the vast majority of Asian and European indices dropped on Monday, with the pan-European STOXX 600 benchmark led down by heavy losses in energy provider EDF.

Brent crude oil stayed near a 2-year high buffeted between further tensions in the Middle East and reports of rising US production.

Silver showed low trading volumes on Monday but stayed above Friday’s close at $16.88. Trading in platinum and palladium also remained subdued throughout the morning with palladium oscillating around the $1000 level through which it slipped last Friday.

Bitcoin, the original crypto-currency, meanwhile slightly recovered after slumping more than 25% in the previous 4 days amid concerns over the cancellation of a software upgrade.

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: https://www.bullionvault.com/gold-news/gold-prices-111320172

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,599,796,315
Stories:	8,140,349