PT Solid Gold Berjangka | Gold Steadies as Rate-Pause Optimism Fades After Robust US Data
Gold steadied after dropping Wednesday as stronger-than-expected US economic data triggered bets that the Federal Reserve could hike interest rates again this year.
The market-implied odds of a quarter-point Fed rate increase in November climbed to more than 50% after US service-sector activity rose sharply. At the start of this week, swaps traders were pricing in a less than 40% chance for a hike. Higher rates are typically negative for non-yielding bullion.
The US dollar also strengthened on the report, making the precious metal more expensive for international buyers as it is priced in the greenback.
Spot gold was little changed at $1,916.47 an ounce as of 8:13 a.m. in Singapore, and is down more than 1% so far this week. The Bloomberg Dollar Spot Index edged up. Silver and palladium slipped, while platinum gained.
Source : Bloomberg
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