Summary:
Gold opened lower on Wednesday ahead of the Fed meeting. Bullion saw its best performance in October since March thanks to the Israel-Hamas conflict.
Gold opened lower on Wednesday ahead of the Fed meeting. Bullion saw its best performance in October since March thanks to the Israel-Hamas conflict.
The precious metal lost steam above the $2000 mark as other Muslim countries in the region including Iran showed restraint even after ground attack began in Gaza.
The World Gold Council said global gold demand slipped 6% in the third quarter as central bank buying fell short of last year’s record levels and jeweller consumption declined.
Treasury yields have been capped below the 16-year high it hit last week despite higher-than-expected PCE reading.
The Treasury is expected to announce more aggressive debt funding strategy today, which could weigh on bond markets.
Oil prices teetered as global supply looks more robust than expected. OPEC crude output rose for a third straight month in Oct and US field production of Crude Oil also rose to a new monthly record in August, separate reports showed.
Slow global economic growth will keep crude prices anchored below $90 this year and next, unless the Israel-Hamas conflict involves major oil producers, a Reuters poll showed on Tuesday.
Gold dropped out of its uptrend channel and more pains will be felt if it falls below the 1970 level. For Brent crude, a bearish head and shoulders formation points to continued weakness.
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