PT Solid Gold Berjangka | Gold Steady as Traders Reasses Rate Path After Hawkish Fed Turn
GOLD EMAS Spot Gold PT SGB Solid Gold Berjangka Solid Group SG Berjangka
Solid Gold Berjangka | Gold held its decline as traders continued to rethink their views on monetary policy after the Federal Reserve watered down expectations of multiple rate cuts this week before the end of the year.
Bullion held steady in Asian hours and was little changed throughout the week following an unexpected report showing a decline in the U.S. producer price index. This was evidence that inflationary pressures were easing.
However, it was not enough to boost sentiment, as Fed officials indicated Wednesday that they expect only one rate cut this year, compared to the three expected in March. Rising interest rates are usually negative for gold, which does not pay interest.
The precious metal has fallen from last month’s record amid fading optimism that the Fed will ease policy significantly anytime soon. But it is up about 12% so far this year, supported by haven demand and buying by central bankers and Chinese consumers.
Spot gold was little changed at $2303.71 an ounce as of 9:05 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.1%. Silver was also flat, while palladium and platinum rose.
Source: Bloomberg