https://www.miningweekly.com

Gold climbs to one-month high as dollar drops before Fed meeting

2nd November 2016

By: Bloomberg

  

Font size: - +

LONDON, England – Gold rose to the highest in almost a month as the dollar weakened and investors awaited the US Federal Reserve’s interest-rate decision on Wednesday. Shares of gold-mining companies also advanced.

Bullion gained a fourth day, the longest run in a month, as the Bloomberg Spot Dollar Index extended its retreat from a seven-month high. Gold’s recent gains pared a loss in October as the Federal Bureau of Investigation reopened an inquiry into Hillary Clinton’s use of private e-mail, adding more uncertainty to the US presidential race. A jump in exchange-traded funds backed by the metal also helped support prices.

Gold slipped in two of the past three months amid mounting expectations that the Fed will raise interest rates soon, curbing demand for assets that don’t provide a yield. While the market doesn’t expect policy makers to increase rates after their meeting Wednesday, the odds of a move by year-end climbed to 70% from 59% a month ago.

The metal is rising on “election jitters, dollar moves and good inflow to gold ETF products recently,” George Gero, a managing director at RBC Wealth Management, said in an e-mail. Demand during India’s Diwali festival has also helped stoke the rally, he said.

Gold for immediate delivery gained 0.9% to $1 289.18/oz at 2:03 pm in New York, after reaching $1 290.92, the highest since October 4, according to Bloomberg generic pricing. The metal fell 2.9% last month. On the Comex in New York, futures for December delivery gained 1.2% to settle at $1 288/oz.

Investors boosted their holdings in gold ETFs for a sixth straight month in October, the longest streak since 2009. Holdings rose 0.7 metric ton to 2 041 t on Monday, taking total gains in October to 8.7 t.

In other precious metals news, silver, platinum and palladium also advanced. A gauge of 16 senior global gold producers gained as much as 3.4%, led by Gold Fields and Harmony Gold Mining.

Edited by Creamer Media Reporter

Comments

Showroom

ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.064 0.093s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: