Gold little changed, awaiting Fed meeting and U.S. jobs data reuters/article/2014/07/28/markets-precious-idUSL4N0Q327I20140728 NEW YORK/LONDON, July 28 (Reuters) - Gold was little changed on Monday as traders and investors awaited the outcome of a Federal Reserve policy meeting, while hazarding a guess on what U.S. jobs numbers for the month might be. The dollar hovered near multi-month highs, capping any potential rise in the yellow metal even as heightened tensions between the West and Russia and continued violence in the Middle East kept safe-haven assets in focus. The FOMC, or the Feds Federal Open Market Committee, could drop subtle clues on the timing for a tightening in U.S. interest rates when it issues its statement on Wednesday after a two-day meeting. Higher interest rates would be negative for gold as they encourage investors to switch to assets that, unlike bullion, pay interest. U.S. second-quarter GDP data, due on Wednesday, and July non-farm payrolls, or job numbers, due on Friday, are other indicators on when interest rates could rise. Gold hit a five-week low below $1,300 an ounce on Thursday on speculation that U.S. job gains so far this year could accelerate the need for higher interest rates. Fed Chair Janet Yellen said earlier this month the central bank might raise rates sooner than expected if labor growth remained robust. In Mondays session, the spot price of bullion was down 0.2 percent at $1,304.96 an ounce by 4:05 p.m. EDT (2005 GMT). U.S. gold futures most-active contract, for delivery in August, settled flat at $1,303.30 an ounce. The market cut some of its early losses after additional European sanctions on Moscow boosted golds safe-haven standing. Clashes between Ukrainian troops and pro-Russian rebels and fighting between Hamas and Israel also encouraged some investors to stay in gold. Among other precious metals, spot silver fell half a percent to $20.57 an ounce, having touched its lowest since June 19 at $20.26 on Thursday. Spot platinum gained almost 1 percent to $1,483.75 an ounce, while spot palladium rose 0.2 percent to $877.50.
Posted on: Tue, 29 Jul 2014 17:38:12 +0000
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