Investing.com – Gold gained in Asia on Thursday with Fed view on rates seen supportive along with a weaker dollar in the short term, though investors say Friday’s nonfarm payroll data will be key for direction in the coming year.
for December delivery on the Comex division of the New York Mercantile Exchange rose 0.29% to $1,280.96 a troy ounce. The fell 0.30% to 94.42.
The Federal Reserve kept U.S. overnight interest rates unchanged and highlighted “solid” economic growth at the conclusion of its two-day policy meeting. Analysts said the Fed’s statement indicated that a rate hike next month is overwhelmingly likely.
Overnight, gold prices shrugged off a rebound in the dollar as traders continued to expect the Federal Reserve’s policy statement to show that Fed policymakers voted to leave rates unchanged at their Oct. 31- Nov. 1 meeting.
Private U.S. employers added 235,000 jobs in October, according to a report released Wednesday by ADP and Moody’s Analytics. That beat economists’ forecast of 200,000.
The Institute for Supply Management’s index posted a reading of 58.7 in October, missing expectations for a reading of 60.
Gold prices are sensitive to moves higher in interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
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Source: Investing.com
