Gold falls as Fed’s Kaplan says rate cuts should be restrained
Federal Bank of Dallas president Robert Kaplan introduced some caution to investor enthusiasm that has sent gold holdings in exchange-traded funds to their longest steak of gains in a decade.
Kaplan said that the reduction in borrowing costs by the Fed shouldn’t be a “full-fledged cutting cycle", tamping down expectations of a prolonged monetary easing that helped drive non-interest bearing gold to a six-year high last month.
“This cutting we’re doing should be limited, restrained and modest,” Kaplan said in a Bloomberg Television interview Thursday. “I think we’re in a fragile period in here, which is why I am glad the Fed has taken some action in July and September. But I think this could go either way.”
Gold futures for December delivery slipped 0.3% to $1 507.60/oz at 9:24 a.m. on the Comex in New York, erasing a 0.6% gain earlier.
Worldwide holdings in bullion-backed exchange-traded funds have expanded for 18 days in a row, the longest run of inflows since 2009.
Kaplan’s comments “put markets in doubt that we’re not necessarily cutting,” Bart Melek, head of global commodities strategies at TD Securities in Toronto, said by phone. “It implied there’s not real need to get aggressive.”
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation