Gold Remains Low Below $1280 on Fed Rate Speculation
Gold traded near a two-month low on speculation that U.S. interest rates are set to increase as investors awaited remarks from Federal Reserve Chair Janet Yellen at a meeting of central bankers.
Bullion is still 6.4 percent higher this year as tensions in the Middle East and Ukraine boosted haven demand. Israel vowed to target more Hamas leaders after yesterday killing three commanders, while the U.S. said the militant Islamic State poses an “imminent threat” after the beheading of an American journalist.
Gold for December delivery rose 0.3 percent to $1,279.50 an ounce on the Comex in New York.
Silver for immediate delivery increased 0.2 percent to $19.4899 an ounce. The metal dropped yesterday to $19.3194 an ounce, the lowest since June 12, and is heading for a sixth weekly decline that’s the longest stretch since April 2013.
Spot platinum advanced 0.2 percent to $1,424.19 an ounce after prices fell for a 10th day yesterday to complete the longest slump since at least 1987. The metal declined yesterday to $1,413.63 an ounce, the lowest since May 1, and is set for a second week of losses.
Palladium gained 0.4 percent to $883.35, after climbing to a 13-year high of $902.09 on Aug. 18. The metal is heading for a decrease this week.
