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Thursday, June 1, 2017

Prime News: Gold Steady Near 5-Week Highs as U.S. Rate Hike Case Weighs

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Gold was steady on Thursday after touching a five-week peak during the session earlier on geopolitical concerns, however, expectations that the U.S. Federal Reserve will raise interest rates this month added pressure on prices.

Spot gold slipped 0.1 percent at $1,267.32 an ounce. It notched a session peak of $1,273.74 per ounce on Wednesday, its highest since April 25. U.S. gold futures slipped 0.3 percent to $1,266.50.

Federal fund futures indicated that traders saw an 87 percent likelihood the U.S. central bank will hike key overnight borrowing costs by a quarter point, to 1.00-1.25 percent, during its June 13-14 policy meeting, according to CME Group’s FedWatch tool.

A group of investors led by China’s Fosun International Ltd is set to purchase a ten percent stake in Russia’s top gold producer Polyus for $887 million, they said.

The U.S. Mint has sold 14,500 ounces of American Eagle gold coins last month, higher by 141.7 percent from March, according to the latest data.
The material has been provided by InstaForex Company – www.instaforex.com

June 01, 2017 at 09:07AM

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