Fundamentals and News*:
· Gold Drops from Seven-Week High as Investors Weigh Fed Comments
- Gold dropped from the highest level in seven weeks as investors weighed the probable timing of the first U.S. interest rate increase since 2006, with one Federal Reserve policy maker saying that move before year-end was justified while others differed.
- Bullion for immediate delivery lost as much as 0.5 percent to $1,157.70 an ounce and was at $1,158.13 at 9:21 a.m.in Singapore, according to Bloomberg generic pricing. Prices rose for a second day on Monday, gaining to $1,169.09, the highest since Aug. 24.
- Bullion investors are tracking comments from U.S. central bankers to figure out when the Fed will start tightening, with prices rebounding from a five-year low in July amid speculation the onset of higher borrowing costs will be pushed back. Atlanta Fed chief Dennis Lockhart argued Mondaythe improving economy justified a move in 2015. Still, Fed Governor Lael Brainard cautioned against raising rates prematurely and Chicago Fed President Charles Evans repeated that he favored a delay to mid-2016.
- Silver, platinum and palladium prices also retreated as the dollar stabilized after dropping for three days. The chances of a rate liftoff in December are below 40 percent, futures data show.
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