Gold edges higher awaiting direction on US rates
The metal is often seen as an alternative investment during times of political and financial uncertainty
London — Gold was on track to end the week barely changed as the market awaited more signs about the timing of an expected US interest rate rise from the Federal Reserve. Spot gold was up 0.2% on Thursday at $1,269.21 an ounce by 2.30pm GMT while US gold futures rose by a similar margin to $1,269.70 per ounce. It has traded in a range of around $16 over the last week. "There is a lack of impulse to be able up push prices higher. The billion dollar question is still ‘when is the Fed going to hike,’" Quantitative Commodity Research analyst Peter Fertig said. Gold is often seen as an alternative investment during times of political and financial uncertainty such as the US Presidential elections in November, while higher interest rates lift the opportunity cost of holding non-yielding assets and boost the dollar, in which gold is priced. Bets that the Fed will hike rates have driven the dollar to nine-month highs against a basket of currencies this week and limited gains in gold. The do...
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