Gold Tumbles As Dollar Cheers Post Fed Gold futures tumbled in the early Asia electronic action today pressured by gains in the US dollar after the Federal Reserve kept its massive bond-buying stimulus in place thereby supporting the economic growth. The Federal Reserve voted 9-1 on Wednesday to continue monthly asset purchases of $85 billion a month, citing an elevated unemployment rate and saying Washington’s economic policies are still holding back growth. The Fed’s rate-setting Open Market Committee saw “growing underlying strength in the broader economy” but was awaiting “more evidence that progress will be sustained before adjusting the pace of its purchases.” Another US political crisis over spending and borrowing looms in early 2014, when the temporary measures implemented on October 17 are due to lapse. The Fed has kept its benchmark interest rates at an unprecedented near-zero since December 2008. An ounce of gold on the Comex division of New York Mercantile Exchange is trading down $10.7 at $ 1338.6. Yesterday, it rose $3.80, or 0.3%, to settle at $1,349.30 an ounce. The dollar hovered near a two-week high against a basket of major currencies early in Asia after Federal Reserve decided to hold monetary policy steady, saying that conditions remained too weak to pull back from its bond-buying program. Against the yen, the dollar bought 98.53, not far from a two-week peak of 98.69 set overnight, while the euro traded at 135.24 after extending to a 1-1/2 week high of 135.45. The euro slipped to $1.3721 from Wednesdays high of $1.3787. MCX December bullion broke below Rs 30000 per 10 grams yesterday, however it managed to close with the gain of Rs 12 at Rs 30158. Today it may open near Rs 30000 with support around Rs 29970 and Rs 29900-800 levels. The weekly U.S. jobless claims and the Chicago PMI business barometer report are due later in the day. Powered by Commodity Insights
Posted on: Thu, 31 Oct 2013 04:35:24 +0000
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