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Sunday, October 17, 2021

Gold Prices Trim Gains but Remain Supported

Gold Prices Trim Gains but Remain SupportedGold prices pull back from session highs but weaker dollar still supports

Investing.com – Gold prices trimmed gains on Thursday, after the release of upbeat U.S. data but the precious metal remained supported near one-week highs as the Federal Reserve’s latest policy statement continued to weigh on the U.S. dollar.

Comex were up $7.40 or about 0.59% at $1,256.00 a troy ounce by 08:40 a.m. ET (12:40 GMT), just off a one-week high of $1,261.50 hit earlier in the day.

Data on Thursday showed that U.S. retail sales in November, while a separate report showed that U.S. initial jobless claims last week.

In a widely expected move, the Fed raised interest rates by 0.25 basis points to at the conclusion of its policy meeting on Wednesday.

However, the central bank , which include three more interest rate hikes in both 2018 and 2019, disappointing expectations for four rate hikes next year.

In other news, Congressional Republicans on final tax legislation on Wednesday, clearing the way for final votes next week.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 93.32, its lowest since December 6.

Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.

Elsewhere on the Comex, were up 0.73% at $15.98 a troy ounce.

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Source: Investing.com

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