Fed succession talk pushes gold to 2-1/2 week low

Reuters/Peter Hobson/10-25-17

Gold touched a 2-1/2 week low on Wednesday after reports that Republican senators favoured John Taylor to become the next head of the U.S. Federal Reserve drove U.S. bond yields to multi-month highs.

Taylor, a Stanford University economist, is seen as someone who could put the Fed on a path of faster interest rate increases compared with current Fed Chair Janet Yellen, whose term expires next February.

Upbeat U.S. durable goods and home sales data also bolstered the case for interest rate rises, helping push U.S. 10-year Treasury yields to the highest since March and yields on 30-year bills to the highest since May.

PG View: Subsequently, gold rebounded to trade higher in the range, leaving the range low from early-Oct well protected as the dollar index stalled ahead of important resistance at 94.00.

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