November 16, 2016
Gold Steady, Trump Economic Policy in Focus
(Reuters) - Gold prices were little changed on Wednesday after snapping a three-session losing streak the day before, with markets focusing on the impact of U.S. president-elect Donald Trump's economic policies.
Spot gold was steady at $1,228.14 an ounce at 0036 GMT, after rising 0.66 percent on Tuesday.
U.S. gold futures were up 0.3 percent at $1,228.10 per ounce.
Trump's election may already be pushing up interest rates and tightening financial markets, something the Federal Reserve will have to monitor as it decides how quickly to tighten monetary policy, Fed Governor Daniel Tarullo said on Tuesday.
U.S. retail sales rose more than expected in October as households bought motor vehicles and a range of other goods, pointing to sustained economic strength that could allow the Fed to raise rates next month.
Oil prices jumped nearly 6 percent on Tuesday on bets OPEC members will agree to cut output when they meet later this month, while stocks rose, led by recently lagging technology shares.
The dollar stood near an 11-month high against a basket of currencies early on Wednesday, after upbeat U.S. data gave the greenback's week-long rally fresh impetus.
The dollar index, which measures the greenback against a basket of major currencies, was down 0.16 percent at 100.070.
The euro zone economy grew steadily in the three months after Britain's shock vote in June to leave the European Union but Trump's protectionist rhetoric is clouding the outlook for 2017.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 percent to 927.45 tonnes on Tuesday from 928.93 tonnes on Monday.