Expectation of fewer US rate hikes supports gold
The Federal Reserve is expected to raise rates at in December, but the market is watching how much further it might lift rates in 2019
Bengaluru — Gold prices were firm on Wednesday, supported by the expectation of fewer rate hikes by the US Federal Reserve in 2019, while palladium traded at a premium to the metal. Spot palladium was up 0.3% at $1,246.72/oz, as of 4.41am GMT, having climbed 2% in the previous session after China agreed to cut tariffs on US-built cars and car parts to 15% from the current 40%. Spot gold was up 0.1% at $1,243.60/oz, while US gold futures rose 0.2% to $1,249.8/oz. Gold is moving sideways given the uncertainties around the pace of Fed rate hikes, the Brexit deal and US-China trade talks, said Brian Lan, MD at dealer GoldSilver Central in Singapore. The Fed is widely expected to raise rates at its December 18-19 meeting, but the market is focusing on how much further it might lift rates in 2019, after recent comments by Fed members to decide the monetary policy based on data have been taken as a signal for lower rate hikes in 2019. Investors also kept a close eye on developments surroun...
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