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MTECHTIPS:- Gold prices up in early Asia with attention on China, Fed next week

MTECHTIPS:- Gold prices up in early Asia with attention on China, Fed next week

Gold prices gained mildly in Asia on Friday with weekend data in China in focus and next week’s Federal Reserve meeting on interest rates. China will release retail sales and industrial production figures at the weekend. On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.10% to $1,110.40 a troy ounce, while silver for the same month gained 0.24% to $14.680. Copper for December delivery fell 0.301% to $2446 a pound. Overnight, gold futures rebounded from a massive sell-off one session earlier amid a sharply weaker dollar, as investors wrestled with the continued uncertainty related to a potential interest rate hike by the Federal Reserve next week. On Thursday morning, weak import data last month from the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) appeased dovish sentiments at the Fed for a delayed rate hike. U.S. import prices fell by 1.8% in August, the BLS said in a monthly report, extending previous losses of 0.9% in July. On a year-over-year basis, imported inflation has fallen by 11.4% — its lowest amount since September, 2009. The FOMC is keeping a close eye on temporary headwinds restraining inflation as it decides whether to raise its benchmark Federal Funds Rate at next week’s two-day meeting, which concludes on Thursday. Nearly a decade has passed since the FOMC has lifted the rate, which banks use to lend to other institutions on overnight loans. The Fed Funds Rate has remained at its current level between zero and 0.25% since December, 2008. Gold, which is not attached to dividends or interest rates, struggles to compete with high-yield bearing assets in periods of rising rates.

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