MTECHTIPS:- Gold holds mostly steady in Asia as U.S. jobs data, Fed in sharper focus
MTECHTIPS:- Gold holds mostly steady in Asia as U.S.
jobs data, Fed in sharper focus
Gold held mostly steady on Monday as investors sharpened their focus on U.S. data and the Fed. In Asia, Japan said industrial output fell 0.6%, an unexpected result as exports eased. Elsewhere, Australia said private sector credit rose 0.6%, better than expected. Gold for December delivery on the Comex division of the New York Mercantile Exchange were mostly steady, up 0.02% to $1,134.20 a troy ounce. Also on the Comex, silver futures for September delivery fell 0.16% at $14.525 a troy ounce. Elsewhere in metals trading, copper for December delivery fell 0.87% to $2.326 a pound. In the week ahead, investors will be focusing on Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike. Markets will also be watching surveys of the manufacturing and service sectors, factory orders and trade data from the world’s largest economy for fresh indications on the timing of a rate hike. On Monday, the U.S. is to release figures on manufacturing activity in the Chicago region. Last week, Gold futures edged higher on Friday, but still ended the week down more than 2% amid expectations the Federal Reserve will start raising interest rates at its next policy meeting in September. Comments by Federal Reserve Vice Chairman Stanley Fischer on Friday suggested that the door was still open for a rate hike at the Fed’s next meeting due to take place September 16-17. Fischer said that the case for a rate increase in September was “pretty strong”, though it was still too soon to say what the central bank might do. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.