A Look at Gold as the Fed's Rate Hike Looms

A Look at Gold as the Fed's Rate Hike Looms”

Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

MSCI's all-country world stock index gained 0.7 per cent, and hit an all-time high. USA crude prices were up 0.76 percent at $49.12 a barrel, as investors weighed the impact of the Organization of the Petroleum Exporting Countries' production cuts against rising US shale oil output and persistently high inventories.

Prospects for higher rates have generally been dollar-positive and gold-negative as a richer buck makes gold less attractive to investors using another currency. The dollar, which went as high as 115.195 yen earlier this week, last stood at 113.420. It hit a session high at 0.7687 and made session lows at 0.7662 levels. Gold had consolidated around the $1,200 / ounce level, but has seen a sudden surge after the telegraphed interest rate hike. The kiwi had risen to a 12-day peak of $0.7050 the previous day.

Silver prices rose slightly on Friday and were on track for their first weekly gain in three, as a weaker USA dollar drove investors to precious metals. That was supported by other data on Friday showing a gauge of future economic activity rose in February to its highest level in more than a decade.

European shares edged higher on Friday, though weaker auto stocks euro zonebanks weighed. France's CAC 40 lost 0.3% at 4,986.61.

US Treasury yields, which slid after the decision, staged a recovery on Thursday and continued to rise on Friday. The Nasdaq was flat, while the Dow and the S&P 500 posted losses.

IOC Chief says Pyeongchang stage is set for Winter Olympics 2018
Bach returned his focus to curbing excessive spending by hosts by welcoming budget cuts by organizers of the 2020 Tokyo Olympics. The IOC executive board asked its four vice presidents to "explore changes" in Olympic bidding and report back in July.

'It was amazing' - Sizing John delivers thrilling Gold Cup for Harrington
Sizing John is the first horse to complete the Irish Gold Cup-Cheltenham Gold Cup double since Imperial Call in 1996. Cue Card and Native River follow in the market and Colin Tizzard's flyers are attracting plenty of attention.

South Africa's top court orders end to welfare grants fiasco
The court gave Dlamini until March 31 to show why she should not pay the costs of the case from her own pocket. In 2015 SASSA said that it would take over payments when the suspension ended on April 1, 2017.

Hours after the Fed's rate hike, China's central bank on Thursday raised short-term interest rates for the third time in as many months, a day after the end of the annual session of parliament where leaders warned that tackling debt risks would be a top policy priority this year.

Prices on benchmark 10-year Treasuries rose 24/32 to yield 2.508 percent, from 2.595 percent late on Tuesday.

The dollar index, which tracks the greenback against a basket of six trade-weighted peers, retreated 0.2 per cent to 100.18. US crude settled up 2.4 percent at $48.86 a barrel, after touching a three-month low a day earlier. Both benchmarks gained 0.8 percent for the week.

The dollar was hovering at five-week lows against other major currencies on Friday, as the dovish tone of the Federal Reserve's latest policy statement continued to weigh and as investors eyed the release of USA data due later in the day.

April Comex Gold futures are holding steady on extremely low volume early Friday after holding on to gains produced by the Fed's decision not to increase the pace of monetary tightening after its two-day monetary policy meeting concluded on Wednesday.

Like this


18 March 2017
Bioware Highlights Tech In This New Mass Effect Andromeda Trailer
Note, however, that this latest reservation for Mass Effect Andromeda does not allude to the rest of the game's aesthetics. Players will need their EA account login details to connect the app to your installation of Mass Effect: Andromeda .

18 March 2017
Court Holds Japanese Government And Tepco Liable
The ruling could set the precedent for 30 other cases involving 100,000 plaintiffs, The Guardian reported Friday. The government argued that the damaging power of the natural disaster could not have been predicted.

18 March 2017
G20 to jointly fight bank sector hacking
The U.S. and Germany have come to blows over both trade policy and the euro's exchange rate since U.S. President Donald Trump's administration took office in January.