-Gold weakens as global stock market rally dampens demand
MTECHTIPS:-Gold weakens as global stock market rally dampens demand
Gold futures struggled on Wednesday, as strong gains in global equity markets dampened demand for the yellow metal. Gold for December delivery on the Comex division of the New York Mercantile Exchange shed 50 cents, or 0.04%, to trade at $1,120.50 a troy ounce during European morning hours. A day earlier, gold lost 40 cents, or 0.04%. Asian equity markets rose sharply on Wednesday, tracking strong overnight gains on Wall Street. Japan’s blue-chip Nikkei stock index soared 7.7%, the biggest one-day gain since 2008, while the Shanghai Composite tacked on 2.3%, one day after posting a late rally to end up 3%. The upbeat sentiment carried over to European markets, where Germany’s DAX, France’s CAC 40 and London’s FTSE 100 were all up almost 2% in early trade. In the U.S., Wall Street pointed to strong gains at the open, with the Dow futures up 200 points. Global equities rallied amid hopes of more monetary stimulus from policymakers in China and Europe in the coming months. Gold prices were also weighed amid ongoing uncertainty about whether the Federal Reserve will increase interest rates later this month when it meets on September 16-17. Last week’s U.S. jobs report failed to provide much clarity on when the U.S. central bank will decide to raise short term interest rates. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.