· Gold rose on Wednesday after the Federal Reserve held interest rates steady following its two-day meeting this week and indicated that no action is likely next year amid persistently low inflation.
· Gold prices rose earlier in the day on worries about a trade deal between the U.S. and China.
· Spot gold gained 0.92% to $1,477.36 per ounce, extending gains into a third straight session. U.S. gold futures inched 0.93% higher to $1,482.0.
· U.S. President Donald Trump has only days to decide whether to impose tariffs on nearly $160 billion in Chinese goods, a move that would exacerbate the 17-month long trade war.
· Top economic and trade advisers from the White House are expected to meet in coming days with Trump over the decision, a source told Reuters, though a final decision has not been made.
· Better than expected U.S. consumer prices in November, supported the Fed’s intention not to cut interest rates again.
· The European Central Bank is also expected to keep rates steady at a meeting on Thursday.
· “The global economy appears to have stabilized after a year of growth uncertainty. If yields on U.S. 10 (Treasury) yields rise above 1.90%, we think that will signal the end of golds rally and push prices below $1,400/oz,” analysts at OCBC bank said in a note.
· Palladium rose 0.6% to $1,907.70 an ounce, scaling a fresh peak of $1,911.50, on concerns that stagnating supply of the autocatalyst metal may fail to meet demand.
· Adding fuel to supply concerns, prices zoomed past the key $1,900 level on Tuesday after mines across South Africa began shutting down after flash flooding triggered the most severe power blackouts in more than a decade.
· Palladium was on track for a 14th straight session of gains.
· Platinum jumped 0.8% on Wednesday, having hit a one-month high of $930.
· South Africa is a major producer of palladium and also has the biggest and most lucrative platinum reserves.
· Meanwhile, spot silver inched 0.1% higher to $16.67 an ounce.
Reference: CNBC
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