· Gold edged lower on Thursday as upbeat U.S. economic data bolstered the possibility of the Federal Reserve raising interest rates next month and beyond.
Spot gold was down 0.1 percent at $1,276.95 per ounce at 0746 GMT, slipping from Wednesday's 3-1/2-week high of $1,289.09.
U.S. gold futures for December delivery dipped 0.1 percent to $1,276.70.
· It (gold’s range bound movement) is a combination of Fed rate hike (expectations) and equity market volatility. There are increasing risks in the market now,” said Argonaut Securities analyst Helen Lau.
“Views around these two countering forces could keep gold flat in the short-term,” she added.
· Underlying U.S. consumer prices increased in October, strengthening the view that a recent disinflationary trend worrying the Fed probably had ended.
Falling unemployment and sustained growth mean the U.S. economy has accelerated beyond a sustainable level so the Fed should continue to raise interest rates, including next month, veteran Fed policymaker Eric Rosengren said on Wednesday.
· Spot gold remains neutral in a range of $1,270-$1,286 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
· “It is perhaps best to remain sidelined for now, as the gold complex seems to be trapped within a relatively tight trading range and has yet to assert a meaningful direction,” INTL FCStone analyst Edward Meir said in a note.
· Asian shares got off to a cautious start on Thursday after Wall Street stumbled despite upbeat U.S. economic news and the Treasury yield curve hit its flattest in a decade.
· The dollar index, which tracks the U.S. currency against a basket of six major rivals, edged up 0.1 percent.
· Silver was unchanged at $16.99 per ounce, while platinum was down 0.1 percent at $930.
Reference: Reuters
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