Share

Gold holds steady, focus on Fed meeting

Singapore - Gold was little changed just above $1 300 an ounce on Tuesday, supported by geopolitical tensions in the Middle East and Ukraine.

Investors also focused on US jobs data and a Federal Reserve policy meeting this week.

The Fed kicks off its two-day meeting later on Tuesday, with markets watching for clues as to when the U.S. central bank will begin increasing interest rates. The Fed will make a statement on Wednesday at the end of the meeting.

"Gold is going to be range-bound until the Fed meeting and economic data later this week," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.

"Until then, we can see gold holding near $1 300 as that seems to be a strong support level due to the geopolitical tensions."

Spot gold was flat at $1 303.70 an ounce at 08:19, after slipping 0.3% in the previous session. US gold was up almost $1 at $1 303.90.

Important economic data out this week includes US non-farm payrolls and US gross domestic product.

Indications of a strong economic recovery could prompt the Fed to raise rates sooner than expected.

Higher rates would encourage investors to withdraw money from non-interest-bearing assets such as gold.

Bullion, seen as a safe-haven asset, has benefited from tensions between the West and Russia.

US and European leaders agreed on Monday to impose wider sanctions on Russia's financial, defence and energy sectors.

The new sanctions are aimed at increasing the pressure on Russian President Vladimir Putin after a Malaysian airliner was shot down over territory held by pro-Moscow rebels in eastern Ukraine.

Israeli Prime Minister Benjamin Netanyahu warned on Monday of a protracted war in Gaza, dashing any hopes of a swift end to the three-week conflict.

In the physical markets, demand was subdued as buyers were waiting on the sidelines for a possible drop in prices.

Premiums in top buyer China were steady at about $2 to $3 an ounce.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders