PT Equityworld-Gold Futures on the COMEX Division of the New York Mercantile Exchange ended higher on Thursday night (Friday morning EDT), because traders consider the treatise Federal open market Committee (FOMC), which was released after the market closing on Wednesday.
The most active gold contract for December delivery climbed 3.8 points, or 0.3%, became settled in the level of US $ 1.257 per tray .6 ounce. The September FOMC meeting treatise shows that although kondisi-kondisinya is nearly ready to raise benchmark interest rates, the US central bank opted to wait further evidence of strong employment and an increase in inflation before interest rates increase.
Equity world : The Gold Price Is The Fed Rate Is Still A Question Mark, Precious Metals Further Down
Analysts believe that the Fed would likely act before the end of the year, according to previous cue. After the FOMC meeting of the treatise was released on Wednesday, investors believe the Fed will raise interest rates from 0.50% to 0.75% for the December FOMC meeting. According to CME Group Fedwatch tools, current implied probability to raise rates from 0.50 to 0.75 percent percent is at nine percent for November 2016, and 70% at a meeting December 2016.
Gold was given further support because of the U.S. dollar index down 0.42 per cent to 97.57 at 17.30 GMT. The index is a measure of the U.S. dollar against a basket of other major currencies. Gold and the dollar usually move in opposite directions, which means if the dollar goes down then gold futures will rise, as gold as measured by the dollar becomes cheaper for investors.
However, gold is prevented from rising further when the U.S. Labor Department released its weekly jobless claims report showed new claims remained unchanged at 246,000 during the week that ended October 8. Analysts noted that these numbers are on the lowest end of the estimates, and a positive sign for the U.S. economy, pushing investors away from the “safe haven” assets in precious metals, and provide support on the Fed to raise rates
. Traders also are awaiting the release of the report on the producer price index on Friday, along with a report on retail sales. Silver for December delivery dropped 4.7 cents, or 0.27 per cent, to close at 17.458 u.s. dollars per ounce. Platinum for delivery in January 2017 down 9.0 u.s. dollars, or 0.96 per cent, to close at 932.9 u.s. dollars per ounce.