Investing.com – Gold prices eased in Asia on Wednesday as investors continue to see uncertainty about next year’s outlook for interest rates in the U.S. and Europe.
for December delivery on the Comex division of the New York Mercantile Exchange eased 0.11% to $1281.54 a troy ounce. In Japan, third quarter GDP came in at a a provisional 0.3% increase on quarter as expected and a 1.4% pace for the year, a bit more than the 1.3% rise expected. In Australia, the wage price index came in at a 0.5% increase, compared with a 0.7% rise seen on quarter and at a 2.0% rise, compared with a 2.2% increase on year expected
Four of the world’s top central bankers promised on Tuesday to keep openly guiding investors about future policy moves as they slowly withdraw the huge monetary stimulus rolled out during the financial crisis.
After pumping some $10 trillion into financial markets since the 2008 crisis – driving them many markets to record highs – the Federal Reserve, European Central Bank, Bank of England and Bank of Japan are now trying to wean investors off easy money without causing an upset.
The Fed has said it expects three rate hikes in 2018 as well as one indecember, but the market ha not priced those in fully for next year.
Overnight, gold prices rose on Tuesday as traders increased their bullish bets on the pressure metal while dollar weakness lifted sentiment on the precious metal.
Gold prices added to Monday’s gains, shrugging off a report showing wholesale inflation grew faster-than-expected in October.
The Labor Department said on Tuesday its producer price index for final demand increased 0.4% last month. In the 12 months through October, the PPI rose 2.8% after rising 2.6% in September.
The upbeat wholesale inflation report eased investor fears over the recent trend of slowing inflation, lifting expectations for a bullish consumer inflation report due Wednesday.
Gold prices have made a bold start to the week amid renewed safe haven demand following rising political uncertainty in UK amid reports of Tory rebellion mounting against UK Prime Minister Theresa May, while uncertainty over US tax reform continued to weigh on risk sentiment.
Supporting the uptick in sentiment on gold prices was data showing that traders increased their bullish bets on the precious metal for the second week in a row.
Net bullish bets on gold rose to 195,800, from 193,100 the previous week according to a report from the Commodity Futures Trading Commission (CFTC) on Monday.
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Source: Investing.com
