Gold prices rise on Wednesday    Asian markets edge lower on Wednesday    Oil prices dip on Wednesday    Egypt scraps parliamentary election results in 19 districts over violations    Egypt's public prosecution hands over seized gold worth $34m to central bank    Finance ministry pushes trade facilitation with ACI rollout for air freight    Abdelatty stresses Egypt's commitment to peaceful conflict resolution    Deep Palestinian divide after UN Security Council backs US ceasefire plan for Gaza    Health minister warns Africa faces 'critical moment' as development aid plunges    Egypt's drug authority discusses market stability with global pharma firms    SCZONE chair launches investment promotion tour in France    Egypt extends Ramses II Tokyo Exhibition as it draws 350k visitors to date    Egypt signs host agreement for Barcelona Convention COP24 in December    Regional diplomacy intensifies as Gaza humanitarian crisis deepens    Egypt's childhood council discusses national nursery survey results    Al-Sisi urges probe into election events, says vote could be cancelled if necessary    Filmmakers, experts to discuss teen mental health at Cairo festival panel    Cairo International Film Festival to premiere 'Malaga Alley,' honour Khaled El Nabawy    Cairo hosts African Union's 5th Awareness Week on Post-Conflict Reconstruction on 19 Nov.    Egypt golf team reclaims Arab standing with silver; Omar Hisham Talaat congratulates team    Egypt launches National Strategy for Rare Diseases at PHDC'25    Egypt's Al-Sisi ratifies new criminal procedures law after parliament amends it    Egypt adds trachoma elimination to health success track record: WHO    Egypt, Sudan, UN convene to ramp up humanitarian aid in Sudan    Grand Egyptian Museum welcomes over 12,000 visitors on seventh day    Sisi meets Russian security chief to discuss Gaza ceasefire, trade, nuclear projects    Grand Egyptian Museum attracts 18k visitors on first public opening day    'Royalty on the Nile': Grand Ball of Monte-Carlo comes to Cairo    Egypt launches Red Sea Open to boost tourism, international profile    Omar Hisham Talaat: Media partnership with 'On Sports' key to promoting Egyptian golf tourism    Sisi expands national support fund to include diplomats who died on duty    Egypt's PM reviews efforts to remove Nile River encroachments    Egypt will never relinquish historical Nile water rights, PM says    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Precious-Gold firms for third day ahead of Fed tapering decision
Gold price rise in the United States before the Federal Reserve decision over reducing its bond-buying programme
Reuters Published in Ahram Online on 17 - 12 - 2013

Gold inched up for a third session on Tuesday, supported by a short-covering rally, even though investors were nervous ahead of a Federal Reserve polciy decision on whether to begin tapering its bullion-friendly stimulus measures.
Gold has lost over a quarter of its value this year as fears that the Fed will scale back its $85 billion monthly bond purchases brought a 12-year bull market to an end.
Most economists believe the Fed will not begin tapering till March of next year, which could be prompting bullion investors to cover positions. The Fed will issue a statement on Wednesday,
at the end of its two-day meeting.
"I think this short-covering rally we have seen recently could be bigger if the Fed doesn't make a move tomorrow," said a Hong Kong-based precious metals trader."Short positions are at
multi-year highs and the outflows from exchange-traded funds are still high. Clearly the mood is still bearish."
Spot gold had risen 0.7 percent to $1,245.90 an ounce by 0756 GMT, while silver climbed nearly 1 percent. Bearish bets by hedge funds and money managers in U.S. gold
futures and options are close to a 7-1/2 year high, according to data from the Commodity Futures Trading Commission.
"Post the FOMC meeting, we are more favourable towards gold given recent COMEX data, which show that speculators still hold significant short positions on gold. The approaching year-end
may lead to a covering of spec shorts, which is price supportive," HSBC analysts said in a note.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 8.70 tonnes to 818.90 tonnes on Monday - its biggest outflow since Oct 21.
Holdings are at their lowest since January 2009 after more than 450 tonnes of outflows this year caused by investors channelling money towards risky assets such as equities.
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