Gold settle below $1,200 as investors look for Fed rate-hike hints
MarketWatch - Apr 13, 2015
Gold futures settled back below $1,200 an ounce Monday, taking a cue from a rising dollar as investors weigh the timing of an interest-rate increase by the U.S. Federal Reserve.
Gold futures for June delivery fell $5.30, or 0.4%, to settle at $1,199.30 an ounce on Comex following a 0.3% gain last week. May silver fell 9.1 cents, or 0.6%, to $16.291 an ounce.
Gold is in a “continuous seesaw,†struggling to stay above $1,200, a critical psychological level, said Naeem Aslam, chief market analyst at AvaTrade. The metal, however, still holds key support at $1,180, he said.
Looking ahead, Aslam said major events this week that can “bring more clarity in terms of a Fed rate hike decision†are reports on producer prices and retail sales on Tuesday as well as speeches by the FOMC members, including Richard Fed President Jeffrey Lacker on Wednesday and Fed Vice Chairman Stanley Fischer on Thursday.
Expectations for a Fed rate hike later this summer are keeping a lid on gold futures. A move toward higher rates is seen supporting the dollar and pushing up bond yields. Higher U.S. bond yields can be a negative for gold, since the commodity offers no yield.
