Gold market news

Wed, Sep 13 2017, 07:44 GMT

by Fort Financial Services

Gold futures were higher in early trading hours on Wednesday, with market participants looking ahead to key inflation data and economic reports in the United States.

 

On the Comex division of the New York Mercantile Exchange, gold futures were trading 0.15 percent or $2.00 up at $1,334.70 a troy ounce as of 06:55 GMT.

 

The precious metal settled in red territory on Tuesday, extending previous session loses as market sentiment continued to improve in the light of a weaker-than-expected impact of hurricane Irma and as tensions in the Korean peninsula took a backseat.

 

Also weighing on gold was July’s JOLTs job openings, which came in at 6.170 million, above an originally estimated 5.960 million and a previous 6.116 million.

 

A rising number of job openings is seen as positive for the economy, showing the labor market is calling more people to work to comply with higher demand and expansion.

 

This report is relevant because the Federal Open Market Committee justifies monetary policy changes on stronger labor market conditions and sustainable inflation growth.

 

According to Fed funds tracked by CME Group’s FedWatch program, investors are currently pricing in a 41 percent probability of a 25 basis points rate hike by December.

 

A strengthening greenback also contributed to push gold prices down. The metal is a dollar-denominated commodity and a powerful currency makes it less attractive.

 

Ahead in the session, traders will be focusing on the release of the producer price index (PPI) for August as of 12:30 GMT, with a 0.3 percent build eyed. Last month’s Federal Budget Balance is due to be published at 18:00 GMT, with a $119.5 billion deficit seen.

 
 

Published on Wed, Sep 13 2017, 07:44 GMT

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