Gold edges up as U.S. dollar retreats ahead of Fed meeting

Gold edges up as U.S. dollar retreats ahead of Fed meeting”

Federal Reserve policymakers end their two-day meeting to review interest rates.

Bill Dudley, the president of the Federal Reserve Bank of NY has suggested that the Fed's balance sheet will be reduced by $1.0 to $2.0 billion during this exercise, which is tentatively expected to end in early 2020.

The Fed's decision won't be released until Thursday morning local time and the central bank is not expected to alter interest rate levels, but investors are on watch for news as to how its crisis-swollen, $4.5 trillion balance sheet will be unwound.

Spot gold was down 0.3 percent at $1,315.36 an ounce by 0658 GMT. Recent hurricane activity is expected to cloud the outlook for the Fed - intensifying the problem is the delay in the collection and publication of official data.

The dollar stood little changed at 111.455 yen after climbing to 111.665 overnight, its highest since July 27. South Korean shares .KS11 dipped 0.1 percent, against a backdrop of caution ahead of the Fed meeting as well as continuing tensions on the Korean peninsula.

The energy group added 0.9 percent, boosted by a 3.4 percent gain for oil and natural gas producer Encana Corp (ECA.TO) to C$13.14.

At 9.30am the JSE all share was off 0.22% to 55,927.6 points and the top 40 had also lost 0.22%.

United States crude oil prices slipped below US$50 per barrel but stayed close to multi-month highs as refineries in Texas continued to restart after Hurricane Harvey.

"We expect the MPC to follow through and deliver a 25-basis-point rate hike in November this year", Capital Economics economist Oliver Jones said in a note.

US crude oil prices slipped below $50 per barrel but stayed close to multi-month highs as refineries in Texas continued to restart after Hurricane Harvey. Friday's Baker Hughes report revealed that U.S energy firms cut seven oilrigs in the week to September 15, bringing the total to 749, the fewest since June.

The metal has fallen 4% since hitting a more than one-year high of US$1,357.54 earlier this month, as the USA dollar recovered from lows and as fading concerns over North Korea's nuclear ambitions cut demand for bullion as a haven from risk. It's not a slam-dunk, as persistently subdued global inflation, despite a pick-up in growth, remains somewhat of an impediment to tightening monetary policy. Yields on 10-year Japanese bonds remain near zero, while those on German bunds are the least attractive versus Treasuries in nearly a year.

The Fed's counterparts in Frankfurt and Tokyo will be among those watching the process most closely, given the potential ripple effects on their markets and economies, and the lessons to be learned from the USA experiment. The Trump administration also must fill open board seats.

On Friday, the dollar rallied against the yen during European trade as traders quickly wiped off the latest missile fired over Japan by N. Korea, following an initial decline in risk appetite widely across currency markets. In June, the Fed was forced to lower its 2017 inflation projections to just 1.7 percent.

Like this


19 September 2017
Crash leads to Lewis Hamilton win at Singapore Grand Prix
The Red Bull clipped the Ferrari which continued its way down to Turn 1 but then understeered straight on and into Vettel . Hamilton, 32, said: 'I could have finished fifth and come out a lot worse. "But I'm sure there'll be more opportunities".

19 September 2017
Bill O'Reilly to Matt Lauer
After six months of largely staying out of the public eye, O'Reilly has reemerged in recent days in a series of high-profile interviews while promoting his latest book " Killing England ".

19 September 2017
BidaskClub Upgrades Zoetis Inc. (NYSE:ZTS) to "Strong-Buy"
The company reported $0.53 earnings per share for the quarter, hitting the Zacks' consensus estimate of $0.53. The James Investment Research Inc holds 94,090 shares with $493,000 value, down from 189,000 last quarter.

19 September 2017
New Star Wars Comic Reveals More About Last Jedi Planet
I have to say, I wouldn't actually mind if Disney doesn't show another Star Wars: The Last Jedi trailer and keeps a lot of the footage hidden.

19 September 2017
San Diego restaurant celebrates Chargers losses with free tacos
And judging by the team's 0-2 start, there may be plenty of opportunities for the team's former fans in San Diego to cash in. Lopez said customers have to say the secret phrase to the cashier - Spanos Taco - in honor of Chargers owner Dean Spanos .

19 September 2017
Eden Hazard to start for Chelsea against Nottingham Forest
It's very important to work with the players. "I think he can continue to improve and become one of the best". It is important to trust young players, but also to have a good answer when the chance arrives to play.

19 September 2017
First Data Corporation Class A (NYSE:FDC) Experiences Heavy Trading Volume
After this purchase, 1,309,836 common shares of FDC are directly owned by the insider, with total stake valued at $23,524,655. Citizens Financial Group Inc RI lifted its position in Alliance Data Systems Corporation by 2.2% during the second quarter.

19 September 2017
Orbital ATK Up 20% On News Of Northrop Grumman Deal
The boards of both companies have approved the deal and it's expected to close in the first half of next year. The cash price Northrop agreed to pay for Orbital represents a 22% premium over Friday's closing price.

19 September 2017
The growing hunger for horror: Stephen King's 'It' breaks box office records
According to The Hollywood Reporter , this is just one of several records the King adaptation is breaking. While he definitely has some comical moments, they manage to be creepy and humorous at the same time.

19 September 2017
Monster Hunter World release date confirmed for January 26th 2018
Pre-orders for the limited edition PS4 Pro console, and the game, will begin tomorrow in Japan. Today Capcom has announced the official release date for the game, which is January 26.