Gold may drop for a second day as investors wait for the Federal Reserve’s decision on monetary policy. Palladium extended the longest rally since 2008.
The central bank decides whether to add stimulus when it concludes a two-day meeting today. Gold jumped 2.1 percent on Sept. 7 on speculation of more steps to boost economic growth after U.S. jobs gains slowed. European Central Bank Governing Council member Panicos Demetriades said the ECB might not have to spend a cent on stimulus by buying government bonds.
“People have priced in quantitative easing and the disappointment factor is very high,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “If this quantitative easing does not materialize, you’d surely see prices fall.”
Gold for immediate delivery gained less than 0.1 percent to $1,731.40 an ounce by 11:13 a.m. in London. Prices declined 0.1 percent yesterday. The futures for December delivery were down 20 cents at $1,733.50 an ounce on the Comex in New York.
The one-month interest rate to lend gold in exchange for dollars was a negative 0.13 percent today, the lowest since April and compared with a negative 0.12 percent yesterday, according to data on Bloomberg. The lease rate is derived by subtracting the gold forward offered rate from the London Interbank Offered Rate. A negative reading means banks have to pay to have their gold deposits lent.
Fixing Falls
The metal sold at the morning “fixing” in London at $1,730.50 an ounce, down from $1,737 an ounce at the afternoon fixing yesterday. The fixing is used by some mining companies to sell their production.Gold has climbed 11 percent this year as slowing economic growth boosted demand for assets other than stocks or bonds. Holdings in bullion-backed exchange-traded products expanded to a record 2,489.1 metric tons yesterday, data compiled by Bloomberg show.
Silver dropped 0.5 percent to $33.08 an ounce and platinum was up 0.1 percent at $1,648.24 an ounce after jumping 2.6 percent yesterday on labor unrest in South Africa, the world’s largest producer of the metal. Platinum has climbed 10 days in a row, the longest streak since Aug. 22, 2011. Palladium advanced 0.3 percent to $680 an ounce, also the 10th consecutive, the longest rally since Feb. 28, 2008.
Reymount Investment Products & Services:
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.