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:

Dollar Up, Gold Prices Down as US Fed Raises Rates, Italy's Deficit Flirts with 'Tria Line'

Thursday, September 27, 2018 6:19

% 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 fell hard against the Dollar at the start of New York trade on Thursday, dropping further below $1200 than any time so far in September after the Federal Reserve’s latest hike to interest rates was followed by stronger than expected US jobs data.

Last week saw claims for jobless benefits rise less than analysts had forecast despite the impact of Hurricane Florence, holding near half-century lows according to the Department of Labor.

The rising Dollar pushed gold prices down below $1187 per ounce, the lowest since 24 August, as a row over Italy’s government budget also saw the Euro currency fall and Milan’s stockmarket drop 1.0% from yesterday’s 7-week high.

New York equities held flat after slipping on Wednesday’s widely-expected quarter-point rise to the Fed Funds rate.

Silver meantime erased the last of this week’s earlier 1.7% gain to trade at $14.25 and platinum also fell hard, trading $20 beneath last Friday’s spike to 6-week highs of $839.

[Save a further 0.5% buying platinum on BullionVault before this weekend with this September 0% commission offer.]

“There has been some physical demand below $1200, which is supporting gold,” Reuters today quotes Hong Kong dealer Peter Fung at Wing Fung Precious Metals.

“[Because] the Fed statement did not have much of an impact on the Dollar,” said brokerage INTL FC Stone’s analyst Edward Meir overnight, “[that's] possibly giving gold an element of support.”

Wednesday’s Fed statement cut the word “accommodative” while voting members confirmed their outlook for inflation, growth and interest rates on the “dot plot” forecasts.

Betting on 3 or more further US interest-rate hikes over the next 12 months retreated overnight after the Fed’s decision, dropping to 43.1% of speculative positions from Wednesday morning’s level of 49.1% according to data from the CME derivatives exchange.

Italian bond prices rallied meantime, pushing down Rome’s cost of borrowing after the Finance Ministry denied reports that its chief, Giovanni Tria, will resign over demands from the ruling coalition M5s party for a “basic income” paid to poorer families, plus a cut to the state retirement age, in his new 2019 budget.

Analysts say that deputy prime minister Luigi di Maio’s plan to “abolish poverty” risks breaching the Finance Ministry’s so-called “Tria line” of a 2019 budget deficit equal to no more than 2% of GDP.

Italy already has the heaviest debt-to-GDP ratio of the 19 single currency Euro nations at 131%.

Pushing the 2019 deficit up to 2.4% of GDP as the M5s has asked may see large investment funds – including US giants Blackrock and Fidelity – sell off the position in Italian bonds they have taken in recent weeks “betting on a prudent budget,” reports financial paper Il Sole 24 Ore.

“Such a decision could also impact Italy’s credit rating,” it goes on, “with both Standard & Poor’s and Moody’s planning a credit review at the end of October with a high risk of downgrading.”

Gold priced in Euros today rallied from a new 32-month low at €1013, rising back to last week’s closing level at €1020 per ounce.

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-price-092720184

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:	1,600,076,091
Stories:	8,141,155