Fundamentals and News*:
- Gold declined from the highest level in a month after Federal Reserve Chair Janet Yellen said that the U.S. central bank is on track to raise interest rates this year, boosting the dollar.
- Bullion for immediate delivery dropped as much as 0.7 percent to $1,146.38 an ounce and was at $1,146.88 at 11:45 a.m.in Singapore, according to Bloomberg generic pricing. The metal climbed 2.1 percent to $1,153.97 on Thursday, the highest close Aug. 24, and remains up for the week.
- Bullion is on course for a fifth quarterly loss amid prospects for the first rise in U.S. borrowing costs in almost a decade. Yellen spoke a week after the Fed left its benchmark federal funds target near zero, saying on Thursdaythat she and most of her colleagues expected to tighten policy this year. Higher rates curb gold’s appeal as the metal doesn’t pay interest or give returns like competing assets such as bonds and equities.
- “It’s not surprising to see gold give back a couple of dollars after what Yellen said,” Jordan Eliseo, chief economist at trader Australian Bullion Co. in Sydney, said by phone. “There’s every chance this entire tightening cycle might only have two or three hikes, maybe four hikes completely, so I don’t think anyone should kid themselves that the era of easy money is over.”
- Fed fund futures show traders now see a 49 percent chance of a rate increase in December from 64 percent on Sept. 16, the day before the Fed announced its decision.
- Assets in exchange-traded products rose 4.35 tons to 1,522.34 tons as of Thursday, data compiled by Bloomberg showed. The holdings, little changed since early September, dropped to a six-year low last month.
- Bullion of 99.99 percent purity climbed 0.9 percent to 235.90 yuan a gram ($1,150.52 an ounce) on the Shanghai Gold Exchange. Platinum for immediate delivery lost 0.8 percent to $947.30 an ounce and tumbled Wednesdayto the lowest since January 2009. Palladium is up 7.6 percent this week, headed for the biggest weekly gain since March 2013.
v Data Forthcoming Releases:
|4:30 PM||USD||Final GDP q/q||3.7%||3.7|
|6:00 PM||USD||Revised UoM Consumer Sentiment||87.2||85.7|
v Resistance & Support Levels:
|Gold||$ 1,179.4||$ 1,165.9||$ 1,157.6||$ 1,130.5||$ 1,122.2||$ 1,108.7|
|Silver||$ 15.58||$ 15.37||$ 15.25||$ 14.83||$ 14.71||$ 14.50|