LSE: Gold Drifting Lower As Markets Eye Fed Meeting
WASHINGTON (Alliance News) - Gold prices are lower Monday morning, extending losses to a fourth straight session, as traders look ahead to the US Federal Reserve's monetary policy, due Wednesday.
Markets expect the Fed to give some clues regarding timing of imminent interest rate hikes at the conclusion of its monetary policy meeting this Wednesday.
A firm trend in European stock markets and concerns about a slowdown in China as well as worries about the economic situation in eurozone are weighing on the yellow metal.
Gold futures for February delivery are down USD9.30 or 0.76% at USD1,213.20 an ounce, hitting a one-week low.
On Friday, gold futures ended down USD3.10 or 0.3% at USD1,222.50 an ounce. Despite posting losses for three straight sessions, gold gained about 2.7% last week.
Some upbeat economic data from the US, including a report from Reuters and the University of Michigan that showed consumer sentiment index to have risen more than expected in December, weighed on the yellow metal. However, a weak greenback and lower global equity markets limited the bullion's downside.
Silver for March is down USD0.165 or 0.97% at USD16.892 an ounce. Meanwhile, copper is up marginally at USD2.938 per pound.
Besides the crucial Fed monetary policy, other important economic events this week are the Federal Reserve's industrial production report for November, the weekly jobless claims report, the National Association of Home Builders' housing market index for December, the results of separate manufacturing surveys by the New York Federal Reserve and updated FOMC forecasts and the Fed Chair's press briefing, both due on Wednesday could be in the spotlight in the week.
Data on consumer price inflation, third quarter current account data, the Conference Board's leading economic indicators index for November and Kansas City Federal Reserve's regional manufacturing survey for December are also due this week.
The New York Federal Reserve is scheduled to release the results of its manufacturing survey for December at 8:30 am ET.
The Federal Reserve is due to release its industrial production report for November at 9:15 am ET. At 10 am ET, the National Association of Home Builders is scheduled to release the results of its housing market survey for December.
