Gold Ends Lower Ahead Of Fed Meet Outcome

Trading 28 jan 2015 Commentaire »

Gold futures ended lower on Wednesday, ahead of the two-day Federal Reserve policy meet outcome with the dollar trending higher against a select band of currencies.

Markets expect no change to the Fed rate, but await cues as to when the first rate hike may come. Some analysts predict tightening in April, while others believe the Fed will hold off until June or even later. The Fed's decision is expected at about at 2 pm ET today.

A stronger dollar has also weighed on commodities. The dollar jumped to an 11-year peak against the euro on fears that problems with Greece will threaten the eurozone.

Gold for February delivery, the most actively traded contract, shed $5.80 or 0.4 percent, to settle at $1,285.90 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.

Gold for February delivery scaled an intraday high of $1,293.30 and a low of $1,282.70 an ounce.

On Monday, gold ended higher at $1,291.70 an ounce, up $12.30 or 1.0 percent, as the dollar trended lower after some disappointing durable goods orders data from the U.S., even as investors remained focused on the crucial Federal Reserve's policy meet outcome.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased to 752.70 tons on Wednesday from its previous close of 743.44 tons on Tuesday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.26 on Wednesday, up from its previous close of 94.08 late Tuesday in North American trade. The dollar scaled a high of 94.45 intraday and a low of 93.97.

The euro trended lower against the dollar at $1.1343 on Wednesday, as compared to its previous close of $1.1381 late Tuesday in North American trade. The euro scaled a high of $1.1384 intraday and a low of $1.1308.

On the economic front, China's consumer sentiment decreased marginally in January, a survey by MNI and Westpac showed Wednesday. The Westpac-MNI consumer sentiment index edged down to 112.1 in January from 112.5 in December.

Germany's consumer confidence improved strongly to a 13-year high at the start of the year, as a collapse in energy prices boosted disposable income and raised room for more spending, survey data from the GfK showed Wednesday. The forward-looking consumer confidence index rose more-than-expected to 9.3 in February from 9.0 in January. This was the highest since November 2001, when the score was at 9.6. The February reading was expected to rise marginally to 9.1.

Germany's import prices declined at a faster-than-expected pace in December, data from the statistical office Destatis showed Wednesday. The import price index fell 3.7 percent year-on-year in December, faster than November's 2.1 percent decline. Economists had forecast a 3.4 percent decrease for the month.

The German government also lifted its growth projections for 2015, citing robust consumer spending. The economy ministry expects the economy to expand 1.5 percent this year, up from the prior estimate of 1.3 percent. Gross domestic product was up 1.5 percent in 2014.

France's consumer confidence remained stable in January, defying expectations for a rise, data from statistical office INSEE showed Wednesday. The consumer confidence index came in at 90 in January, the same as in December. This was less than the 91 score expected by economists. Unemployment hit a record high in December, data from the Labour Ministry showed Tuesday. The number of unemployed people rose 0.2 percent or by 8,100 over the previous month to 3,496,400 in December.


The material has been provided by InstaForex Company - www.instaforex.com

'Patient' Fed To Keep Rates At Zero

Trading 28 jan 2015 Commentaire »

The Federal Reserve on Wednesday repeated its pledge to remain "patient" on raising interest rates amid unusually low inflation that could derail the U.S. economic recovery.

"Information received since the Federal Open Market Committee met in December suggests that economic activity has been expanding at a solid pace. Labor market conditions have improved further, with strong job gains and a lower unemployment rate," the Fed said at the conclusion of its two-day meeting Wednesday afternoon.

But even though the U.S. unemployment rate has dropped to lowest level since June of 2008, today's statement shows the Fed is unlikely to raise interest rates until at least June.

"Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy," they added.

That's because annual inflation has been anemic, holding at annual rate near 1 percent due to collapsing energy prices and a soaring U.S. dollar.

Policy makers say inflation will decline further in the near term, but "the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of lower energy prices and other factors dissipate."

The Fed decision was unanimous.

The fed funds rate has been at zero since the 2008 financial crisis sparked the worst recession in decades.


The material has been provided by InstaForex Company - www.instaforex.com

*Fed: Economic Activity Has Been Expanding At Solid Pace Since December Meeting

Trading 28 jan 2015 Commentaire »

Fed: Economic Activity Has Been Expanding At Solid Pace Since December Meeting


The material has been provided by InstaForex Company - www.instaforex.com

U.s. Dollar Index Rises After fED Statement Repeats That It can be "patient" in Beginning to Normalize Monetary Policy Stance

Trading 28 jan 2015 Commentaire »
U.S. DOLLAR INDEX RISES AFTER FED STATEMENT REPEATS THAT IT CAN BE "PATIENT" IN BEGINNING TO NORMALIZE MONETARY POLICY STANCE
The material has been provided by InstaForex Company - www.instaforex.com

Crude Oil Futures Little changed After fED Statement

Trading 28 jan 2015 Commentaire »
CRUDE OIL FUTURES LITTLE CHANGED AFTER FED STATEMENT
The material has been provided by InstaForex Company - www.instaforex.com

U.s. Short-Term Interest-Rate Futures rise After fED Statement

Trading 28 jan 2015 Commentaire »
U.S. SHORT-TERM INTEREST-RATE FUTURES RISE AFTER FED STATEMENT
The material has been provided by InstaForex Company - www.instaforex.com

Spot Gold Little changed After fED Statement, down 0.35 Pct at $1,287.56/oz

Trading 28 jan 2015 Commentaire »
SPOT GOLD LITTLE CHANGED AFTER FED STATEMENT, DOWN 0.35 PCT AT $1,287.56/OZ
The material has been provided by InstaForex Company - www.instaforex.com

Australian Dollar Trades at $0.7995 in Early Asia-Pacific Trade

Trading 28 jan 2015 Commentaire »
AUSTRALIAN DOLLAR TRADES AT $0.7995 IN EARLY ASIA-PACIFIC TRADE
The material has been provided by InstaForex Company - www.instaforex.com

New Zealand Dollar Trades at $0.7462 in Early Asia-Pacific Trade

Trading 28 jan 2015 Commentaire »
NEW ZEALAND DOLLAR TRADES AT $0.7462 IN EARLY ASIA-PACIFIC TRADE
The material has been provided by InstaForex Company - www.instaforex.com

*Fed Reiterates It Can Be "patient" In Beginning To Normalize Monetary Policy

Trading 28 jan 2015 Commentaire »

Fed Reiterates It Can Be "patient" In Beginning To Normalize Monetary Policy


The material has been provided by InstaForex Company - www.instaforex.com