MTS Help Center

Gold stuck to a narrow range in Asian trade on Wednesday ahead of release of minutes from the Federal Reserve policy meeting earlier this month amid expectations of an interest rate hike in December.

Bullish homes sales data has added to signs of an improved U.S. economic outlook, with federal funds futures implying traders are pricing in a 100 pct chance of a December rate rise, according to the CME Group's FedWatch Tool.

Spot gold was unchanged at $1,212.45 an ounce by 0626 GMT. In the previous session, the metal eased 0.15 percent, hurt by strong equities. U.S. gold futures rose 0.1 percent to $1,212.40 per ounce.

"The risk-on sentiment continues to prevail in the market and gold prices will not be able to perform," said Helen Lau, an analyst at Argonaut Securities in Hong Kong. "People would want to participate in the equity rally. The gold ETFs continue to decline and investors are trying to reduce their exposure to gold."

"It seems that there is little on the horizon that could materially change the bearish trifecta comprising of a stronger dollar, higher U.S. rates and U.S. equities," INTL FCStone analyst Edward Meir said in a note. "These are formidable headwinds for gold to get through and as a result, we suspect that the precious metal will be under further pressure, likely taking out $1,200 support in fairly short order."

Reference: Reuters