Tags: gold | investors | federal reserve | rate

Gold Market Paralyzed by Indecision on the Fed's Next Rate Move

Friday, 24 Apr 2015 08:06 AM

Investors can’t seem to make up their mind on the gold market.

It’s been almost two weeks since prices sustained a move in either direction for more than a day, the longest period since September, according to data compiled by Bloomberg. Prices fluctuated as reports this week showed conflicting data on the U.S. housing market. The Federal Reserve begins a two-day meeting on April 28 to discuss the direction of interest rate policy.

Gold prices “remain in no-man’s land ahead of a rate decision,” Nicholas Snowdon, an analyst at Standard Chartered Plc in London, said by telephone. “The mixed data is a continuation of the uncertainty over the timing of the expected rate hike.”

Bullion for June delivery slipped 0.6 percent to $1,187.30 an ounce at 7:15 a.m. on the Comex in New York. Prices dropped 1 percent this week, the most since mid-March. Trading volume on Friday was 32 percent below the 100-day average for this time of day.

While the Fed has ruled out raising rates when it meets in April, policy makers have left the door open for June. U.S. reports earlier this week showed sales of previously owned homes jumped in March, while purchases of new ones fell more than forecast.

A measure of gold’s volatility over the past 60 day has fallen to the lowest level since November. Bullion for immediate delivery retreated 0.2 percent to $1,192.11, according to Bloomberg generic pricing.

Platinum has also alternated between daily losses and gains for six sessions, the longest run since December. The metal for delivery in July slipped 0.4 percent to $1,131.70 an ounce.

Silver for the same month lost 0.1 percent to $15.85 an ounce. The metal is heading for a fourth week of losses, down 2.3 percent. Palladium for June delivery advanced 0.1 percent to $770.95 an ounce.


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Investors can't seem to make up their mind on the gold market.It's been almost two weeks since prices sustained a move in either direction for more than a day, the longest period since September, according to data compiled by Bloomberg. Prices fluctuated as reports this...
gold, investors, federal reserve, rate
303
2015-06-24
Friday, 24 Apr 2015 08:06 AM
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