In Commodity News 19/09/2016
Gold and silver rebounded from their lowest close this month as traders apply caution before meetings of the U.S. Federal Reserve and Bank of Japan this week, and as the dollar declined.
Bullion for immediate delivery rose 0.2 percent to $1,313.45 an ounce by 11:25 a.m. in London, according to Bloomberg generic pricing. It closed at $1,310.35 Friday, the lowest since Aug. 31. Silver gained 1.6 percent to $19.091 an ounce.
Gold’s gains have slowed this year as investors consider how the world’s central banks will adjust policy. The odds of a U.S. interest-rate increase at the policy-setting Federal Open Market Committee meeting that ends Sept. 21 are just 20 percent. Precious metals are hurt by higher rates.
“We will probably remain range bound ahead of Wednesday’s FOMC announcement,” said David Govett, head of precious metals trading at Marex Spectron Group in London. “That really is what everyone is waiting for and will keep a lid on most activity for the next few days.”
The Bloomberg Dollar Spot Index dropped 0.3 percent on Monday, helping precious metals that are denominated in the currency.
Hedge funds have cut their bets on a bullion rally by the most in more than three months, with speculation mounting that Fed officials, in their statement scheduled for release this week, will still signal that higher rates are on the way.
In other market news and prices:
Holdings in exchange-traded funds backed by gold added 9.8 metric tons to 2,024.4 tons on Friday, data compiled by Bloomberg show.
Platinum advanced 1.1 percent and palladium climbed 0.3 percent.
Source: Bloomberg
