Investing.com – Gold prices held steady on Thursday, supported by a weaker dollar and consolidating the prior day’s gains after the Federal Reserve offered no surprises, while investors looked ahead to the release of monthly jobs report and references regarding the U.S. central bank.
On the Comex division of the New York Mercantile Exchange, for December delivery inched down $0.58, or about 0.05%, to $1.276.72 a troy ounce by 5:43AM ET (9:43GMT).
The Fed kept unchanged on Wednesday and at the conclusion of its two-day policy meeting. Analysts said the U.S. monetary authority’s statement indicated that a rate hike next month is overwhelmingly likely as markets priced in the odds at 100%, according to Investing.com’s .
Gold prices are normally sensitive to moves higher in interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
However, the dollar moved lower against major rivals on Thursday with traders suggesting that the Fed’s lack of action and the end of the year hike was largely priced in by the market.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, regained 0.14% at 94.51, by 5:57AM ET (9:57GMT) Thursday.
Gold is sensitive to moves lower in the greenback as the precious metal because more affordable to holders of foreign currency.
Unemployment data will continue to be the focus for market participants during the next two sessions as will be released at 8:30AM ET (12:30GMT) Thursday, followed by the October on Friday.
Private U.S. employers added in October, according to a report released Wednesday by ADP and Moody’s Analytics. That beat economists’ forecast of 200,000.
The Fed will also be in focus on Thursday. Apart from a string of appearances from Fed governor , NY Fed president and Atlanta Fed chief , U.S. President Donald Trump is scheduled to announce his pick for the Fed chair when current chief finishes her term in February.
Elsewhere in metals trading, dropped 0.61% at $17.071 a troy ounce, fell 0.28% at $932.45 a troy ounce, lost 0.80% to $991.55 a troy ounce, while slid 0.61% to $3.119 a pound.
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Source: Investing.com
