Gold Rises to Four-Week High as U.S. Orders Data Fuels Fed Bets


24-Sep (Bloomberg) — Gold climbed to four-week high after a report showing orders for business equipment stalled in the U.S., fueling speculation that the Federal Reserve will hold off on raising interest rates until next year.

Bookings for non-military capital goods excluding aircraft fell 0.2 percent last month, a government report showed Thursday. Gold has gained more than 3 percent since Sept. 17, when the Fed announced its decision to hold off on raising rates amid financial market turmoil and uncertainty over what slower global growth means for the U.S. outlook.

Investor will look for further clues on the central bank’s plans when Fed Chair Janet Yellen delivers a speech Thursday in Amherst, Massachusetts. Higher rates curb the appeal of the metal, which doesn’t pay interest or give returns like competing assets such as bonds and equities.

“Gold buyers are scrambling,” George Gero, a vice president of global futures at RBC Capital Markets in New York, said in a telephone interview. “Gold is gaining because of weakness in economics, possible postponement of a rate hike and with Yellen speaking today.”

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