Schneider Electric Expands Youth Partnership with Enactus to Drive Inclusive Energy Transition in Egypt    China's Jiangsu Zhengyong to build $85m factory in Egypt's Ain Sokhna: SCZONE    Egyptian pound ticks up vs. US dollar at Thursday's close    Egypt condemns Israeli plan to build 3,400 settler homes in West Bank    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Egypt, Namibia explore closer pharmaceutical cooperation    Egypt, China ink $1bn agreement for Sailun tire plant in SCZONE    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's Electricity Minister discusses progress on Greece power link    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    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    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Gold trades in range, but US rate hike view weighs
Published in Amwal Al Ghad on 13 - 11 - 2017

Gold prices on Monday drifted in a narrow range, but held near the previous session's low, pressured by a firmer dollar and expectations of a series of interest rate hikes by the U.S. Federal Reserve this year and in 2018.
Spot gold was nearly unchanged at $1,276.61 per ounce at 0734 GMT. On Friday, gold dropped 0.7 percent for its biggest one-day percentage fall since Oct. 26, weighed down by a rise in U.S. Treasury bond yields.
U.S. gold futures for December delivery were up 0.2 percent at $1,277.10.
"The sell-off (on Friday) underlines the sensitivity of gold to the U.S. yield curve and further emphasizes that the safe-haven premium in the gold price is mainly non-existent at the moment," said Jeffrey Halley, a senior market analyst with OANDA.
"Gold's fate will not be its own as we enter the home stretch of 2017."
The expectation of an interest rate hike by the Fed next month is keeping gold prices range-bound, said Richard Xu, a fund manager at China's biggest gold exchange-traded fund, HuaAn Gold.
Philadelphia Fed President Patrick Harker said on Monday that he expects to back an interest rate hike next month and expects the central bank in the United States to raise rates three times next year.
"Markets are digesting this news and we don't see much movement in gold prices in the next one or two months," Xu said.
Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.
The dollar rose as U.S. yields spiked and as the pound stumbled on uncertainty surrounding the fate of British Prime Minister Theresa May's government, although the main investor focus was still on how and when a planned U.S. tax overhaul would pan out.
The head of the House of Representatives' tax-writing committee said on Sunday he would not accept elimination of a federal deduction for state and local taxes, opposing a proposal from Senate Republicans that would hike taxes for some middle class Americans.
Spot gold is biased to retest support at $1,263 per ounce, a break below which could open the way towards the next support at $1,241, said Reuters technical analyst Wang Tao.
"In lieu of major developments, it is difficult to see gold finding the support necessary for a move back toward $1,300 over the near-term," MKS PAMP trader Sam Laughlin said in a note.
In other precious metals, silver edged up 0.1 percent to $16.91 per ounce.
Platinum rose 0.3 percent to $928.49 per ounce and palladium was up 0.2 percent at $996.25.
Source: Reuters


Clic here to read the story from its source.