Gold falls as investors favour equities
Palladium touched a record high, trading at a premium to gold, buoyed by a sustained deficit and hopes of renewed demand from the vehicle sector
Bengaluru — Gold fell on Thursday as stock markets gained for a third consecutive day, but the metal held in a tight $6 range ahead of next week’s US Federal Reserve federal open market committee (FOMC) meeting, when the US central bank is widely expected to raise interest rates. Meanwhile, palladium touched a record high, trading at a premium to bullion, buoyed by a sustained deficit and hopes of fresh demand from the vehicle sector. Spot gold eased 0.3% to $1,241.50/oz at 10.56am GMT, while US gold futures were down 0.3% at $1,245.80/oz. “Next week we have the FOMC rate decision, and it has been pretty much priced in that we are going to have a rise. But if we see the Fed hold off that rate hike in the light of rising inflation and other macroeconomic concerns, gold could be boosted by that,” Mitsubishi analyst Jonathan Butler said. Investors’ focus would be on how much further the US Federal Reserve might lift rates in 2019. “We would have a bit more guidance on that next week wh...
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