Gold Price Rose as Traders Await Next Week’s Fed Policy Meetings
Gold prices rose in Asia as traders anticipate next week’s policy meeting of the U.S. Federal Reserve.
U.S. Gold Futures for December delivery rose 0.1%, at $1,505.55 per ounce.
The Fed policymakers will meet next week. Its Oct. 29-30 policy agreement is likely to yield in a third-straight quarter-point easing, according to Fed Rate Monitor Tool.
U.S. President Trump pushed for even more cut rates. Also, it points to falling interest rates at other central banks around the world.
He tweeted that the Federal Reserve is vagrant in its duties if it doesn’t lower the rate and even, ideally, stimulate. Also, Germany and other countries are getting paid to acquire money. Fed was fast to raise and way too slow to cut.
Besides, supporting gold was the fall-off in Japan’s manufacturing activity. In three years, it fell at the fastest rate.
The United States PMI challenged expectations for a decline and surged fractionally. Contrarily, it had a bit impact on the value of the safe-haven gold.
On Thursday, in Europe, the European Central Bank (ECB) left monetary policy stable.
Mario Draghi, who implemented negative interest rate policy, has done everything to push gold this year, left the industry as ECB President. He served the firm for eight years and handed his position to former IMF Managing Director, Christine Lagarde. She said she wants a strategic review of ECB policy before deciding on its next course of action.
Gold Price Back at $1,500 Ahead of Fed
The lower-for-longer roll in playing at most global central banks. It paves the path for gold’s return to the $1,500 perch after a two-week gap. Also, expectation grew that the Federal Reserve will add to the flow with its rate cut next week.
U.S. gold futures for December delivery rose $9, or at $1,504.70 per ounce, or 0.6%. In post-settlement trade, it settled up $10.35, or 0.7%, at $1.506.05.
Spot gold, in which tracks live trades in bullion, surged $11.42, at $1,503.38, or 0.8%.
It was gold’s first time to return to $1,500 levels since Oct. 10. Also, it came as rate cuts at Bank Indonesia, and the Central Bank of Turkey overnight emphasized the global trend of lower interest rates.
According to surveys by IHS Markit, manufacturing data also remained near sluggishness in the eurozone. The United States PMI elude expectations for a decrease and increase fractionally. On the contrary, that did not stop gold boosting to its gains as the morning continued.
Furthermore, gold is holding the $1,500 area, well supported by shareholder worries about the global economy. It includes U.S.-China tariff talks. Also, the upcoming Federal Reserve meeting and possible rate cut will be there as well. This is according to George Gero, the precious metals analyst at RBC Wealth Management in New York.
However, there were rate cuts somewhere from Bank Indonesia and the Central Bank of Turkey. It underlines that the global trend of lower interest continues mostly intact. Contrarily, Sweden’s Riksbank said it still anticipates to increase its repo rate back to 0% in December. It will end a long experiment with negative interest rates that has had mixed results.
