Gold: $1,229.802.20 Silver: $14.740.13

Gold ends at a nearly 6-month low ahead of expected Fed rate hike

Gold prices fell Tuesday for a third-straight session, marking their lowest settlement in nearly six months ahead of the Wednesday Federal Reserve decision on interest rates and hints on the course for policy in 2018.

Gold futures ended the session lower as the leading dollar index edged higher and U.S. stocks traded mostly higher. Gold typically moves inversely to the dollar and stocks, as risk-on sentiment tends to lure investors away haven gold.

February gold GCG8, -0.33% fell $5.20, or 0.4%, to settle at $1,241.70 an ounce. Prices saw their lowest finish since July 27, according to FactSet data. Gold was down about 2.6% for last week, a third-straight weekly loss. It’s trading up about 7.9% so far this year.

Among exchange-traded funds, the SPDR Gold Trust GLD, -0.12%  was down 0.3%, while the VanEck Vectors Gold Miners ETF GDX, -0.67%  fell 0.6%.

Time (EST)Gold Feb 20184 Dec5 Dec6 Dec7 Dec8 Dec11 Dec12 Dec

US:GCG8
$1,230$1,240$1,250$1,260$1,270$1,280$1,290

The ICE U.S. Dollar index DXY, +0.23% tacked on 0.3% to 94.16.

Investor attention, however, remained fixed on the two-day Fed meeting which kicked off Tuesday, from which an interest-rate hike has already been widely priced into financial markets.

That looming likely hike has helped to keep nonyielding bullion’s price in check lately as investors show a preference for yield-bearing assets. Less certain is how the Fed could approach continued rate increases—policymakers have penciled in three more next year but doubts from low inflation readings persist.

The probability of the Fed hiking rates Wednesday stands at 90.2% according to CME’s FedWatch tool.

Metals investors continued to track the bitcoin rise, with some analysts pinning gold’s stall on lost interest to the cryptocurrency. But, in a note, Goldman Sachs says commentators equating bitcoin to “digital gold” that’s swiping demand from the actual yellow metal are simply wrong.

The investment bank, in a Dec. 11 note to clients led by Jeffrey Currie and Michael Hunds, said many investors have been asking if the cryptocurrency is taking demand away from gold. “We believe the answer is no,” they wrote.

Among other metals, March silver SIH8, -0.60% declined by 0.7% to $15.668 an ounce, after losing around 3.5% last week. The iShares Silver Trust SLV, -0.24%  lost 0.5%.

March copper HGH8, +0.35%  ended at $3.023 a pound, up 0.4%. January platinumPLF8, -1.65% fell 1.9% to $875.70 an ounce. March palladium PAH8, +0.33%  tacked on 0.4% to $1,002.35 an ounce.

 

Read Original Article on MarketWatch.com

Heartland Precious Metals