Gold steady as markets wait on Fed

Gold was up slightly as investors waited for the result of the latest meeting of the US Federal Reserve.
picture of gold bar
All eyes on the Fed

Gold was up slightly as investors waited for the result of the latest meeting of the US Federal Reserve.

Speculation has been growing that the Fed will signal that a rate hike is coming closer.

According to Commerzbank, gold would probably drift lower if that is the case but the German broker also points out that China has started to import the metal again.

Chinese statistics suggest gold imports totalled around 413 tons in the first half of 2016, 12% up on this time last year.

Unfortunately, Commerzbank points out that statistics from Thomson Reuters GFMS tell a different story with a 20% dip year-on-year in the first half in China and a 22% fall to 715 tons globally in physical demand.

The broker does point put that GFMS excludes exchange traded funds from these numbers and if ETFs are included worldwide demand rose by 7% to 947 tons.

Investment demand has been a key influence in the rise in the gold price this year with inflows at record levels, though Commerzbank adds that interest has dropped off recently.

Even so, GFMS upped its forecast for the gold price this year to US$1,279 from US$1,184 and was generally bullish.

Shortly after US trading got underway, spot gold was US$8 higher at US$1,328 per oz. Silver was just about hanging onto US$20 and platinum jumped US$26 to US$1,117.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated.