July 28, 2016
Gold Steady as Fed Leaves Interest Rates Unchanged
(Reuters) - Gold held steady early on Thursday, clinging to gains from the previous session when it rose 1.5 percent to a 2-week high on a weaker dollar after the U.S. Federal Reserve left interest rates unchanged.
Spot gold was little changed at $1,338.87 an ounce at 0112 GMT. Bullion on Wednesday touched a high of $1,342.18, its best since July 14.
U.S. gold rose 0.9 percent to $1,338.7 an ounce.
The Federal Reserve left interest rates unchanged on Wednesday but said near-term risks to the U.S. economic outlook had diminished.
Gold is sensitive to rising U.S. rates, which would lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
The dollar index, which tracks the greenback against a basket of six major rivals, fell 0.4 percent to 96.589.
Earlier this week, it had risen as high as 97.569, its highest level since March.
Japan's prime minister unveiled a surprisingly large $265 billion stimulus package on Wednesday to reflate the world's third-largest economy, adding pressure on the central bank to match the measures with monetary stimulus later this week.
China's annual gold consumption is expected to be 1,200 tonnes by 2020, state-owned Shanghai Securities News reported on Wednesday, citing an estimate from a Ministry of Industry and Information Technology (MIIT) official.
Barrick Gold, the world's largest gold producer, reported a rise in second-quarter profit on Wednesday and said it plans to sell its 50 percent stake in a western Australia mine to cut debt.
Palladium has soared 17 percent so far in July, its best monthly performance in almost 8-1/2 years, as it catches up on gains made by other precious metals in the wake of the Brexit vote and benefits from greater demand for cyclical assets.
Randgold Resources' Loulo-Gounkoto gold mining complex in Mali is currently on track to beat its 2016 production guidance, CEO Mark Bristow told reporters late on Wednesday.