January 28, 2015
Gold Holds Climb on U.S. Rates Outlook as Federal Reserve Meets
(Bloomberg)- Gold held the biggest advance in a week as investors assessed the outlook for U.S. interest rates before the Federal Reserve ends a two-day meeting on Wednesday amid signs a global slowdown may be hurting U.S. growth.
Bullion for immediate delivery traded at $1,290.21 an ounce by 10:22 a.m. in Singapore from $1,292.34 on Tuesday when prices rose 0.9 percent, the most since Jan. 20, according to Bloomberg generic pricing. Gold for April delivery was little changed at $1,292 an ounce on the Comex in New York.
Gold rose 9 percent this year amid speculation the Fed will hold off raising borrowing costs amid data showing a contrast between an encouraging U.S. performance and a global outlook that has darkened since it last met. Chair Janet Yellen said Dec. 17 the Fed is unlikely to move before end-April.
“Mixed U.S. data is raising concerns that weaker foreign economies are weighing on U.S. growth and may prompt the Federal Reserve to delay interest rate increases,” Australia & New Zealand Banking Group Ltd. said in an e-mailed note.
Orders for durable goods unexpectedly fell in December, data from the Commerce Department showed on Tuesday. That follows a report on Jan. 16 showing factory production cooled. Consumer confidence soared in January to the highest in more than seven years, according to Conference Board figures.
The dollar fell from the highest in more than a decade after the durable-goods data. Holdings in exchange-traded products backed by bullion rose 0.2 percent to 1,648.3 metric tons on Jan. 26, the highest in almost three months.
Silver for immediate delivery retreated 0.3 percent to $18.0157 an ounce. Palladium fell 0.5 percent to $776.75 an ounce, while platinum dropped 0.3 percent to $1,260.75 an ounce.