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MTECHTIPS:-Gold down in early Asia as Fed executive says rate hike

MTECHTIPS:-Gold down in early Asia as Fed executive says rate hike

Gold prices eased slightly in early Asia on Wednesday after remarks from a Federal Reserve board voting member that a widely expected rate hike this year could be “close”. On the New York Mercantile Exchange, gold for December delivery fell 0.11% to $1,086.30 a troy ounce. Silver for September delivery fell 0.14% to $14.545 a troy ounce. Copper for September delivery eased 0.05% to $2.351 a pound. Atlanta U.S. Federal Reserve Bank President Dennis Lockhart, in an interview with the Wall Street Journal, said the Fed was “close” to being ready to raise short-term rates. Lockhart, a voter this year, is deemed somewhat as a moderate, analysts said, which made his remarks more meaningful. A rate hike is viewed as bearish for gold, which is unattached to interest rates and struggles to compete with high-yield bearing assets in rising rate environments. Overnight, gold futures inched up amid a slightly lower dollar on Tuesday, as Chinese equities rallied from fresh three-week lows after regulators introduced new stimulus measures aimed at curbing short selling in an effort to reduce volatility in the domestic stock markets. In China, the Shanghai Composite Index soared more than 3% on Tuesday as a flurry of late trading doubled previous gains on the session. The last-minute, frenzied trading came after Chinese regulators introduced new measures meant to discourage short-sellers from attempting to profit on hourly fluctuations in the equity markets. Under the new rules introduced by the Shanghai index, as well as the Shenzhen Exchange short sellers will have to wait at least a day to cover their positions and pay back loans. Previously, the traders were allowed to cover their positions on the same day in which a trade was executed. In recent weeks, Chinese equities markets have suffered
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