Online Share Trading India | Stock Brokers | BSE | NSE Live Stock Quotes | Edelweiss
Hide News  Gold futures stage a late turnaround
Sep 30, 2016  09:59

Bullion prices ended higher at Comex on Thursday, 29 September 2016. Gold futures staged a turnaround late in Thursday's session, settling higher as a drop in U.S. equities boosted the investment appeal of the precious metal.

December gold rose $2.30, or 0.2%, to end at $1,326 an ounce after tapping earlier lows under $1,320. Prices had tallied losses of roughly 1.6% over the past two trading sessions. Silver for December delivery added 6.7 cents, or 0.4%, to $19.188 an ounce.

Gold futures turned decisively higher in the last hour of Comex trading as losses for major U.S. equity indexes intensified on the back of worries about European banks. The indexes still looked set to end higher for the third quarter. European stock indexes finished mixed, but were also set for broad gains for the quarter.

U.S. stocks fell as Deutsche Bank's U.S.listed shares tumbled on news that some hedge funds that clear derivatives through the company had withdrawn some excess cash and options. That helped fuel larger declines for the Dow Jones Industrial Average and S&P 500 and sent investors back to the perceived safety of gold.

But gold prices had spent much of the session trading lower with U.S. and overseas stock markets set to log gains for the quarter and traders looking to comments this week from Federal Reserve officials for clues on the timing and pace of interest-rate increases. Fed remarks so far this week have mostly pointed to a December U.S. rate increase but some disagreement persists.

The ICE U.S. Dollar Index was up 0.2% as markets looked to recent and upcoming commentary from Federal Reserve officials for clues on the pace of interest-rate increases. Higher interest rates can boost the dollar and dull demand for dollar-denominated commodities.

Economic data at Wall Street showed that initial jobless claims rose 3,000 to 254,000 in late September, but remained below 300,000 for 82 straight weeks, pointing to a steadily improving labor market. Meanwhile, revised data suggest that the economy's performance in the spring was slightly better than expected, as business investment wasn't nearly as weak as previously reported. The gross domestic product grew a 1.4% pace in the second quarter.

On Thursday, Philadelphia Fed President Patrick Harker said he backs a December rate increase if the economy continues to grow as expected, while Atlanta Fed President Dennis Lockhart said he expects the Fed to be in a position to raise rates soon.

Powered by Capital Market - Live News

Show News Precious metals drop Sep 29, 2016  09:18
Show News Dull day for precious metals Sep 26, 2016  10:08
Show News Bright day for precious metals Sep 22, 2016  07:36
Show News Mixed finish for bullions Sep 21, 2016  10:04

Market News:Economy | Market

Market Commentary:Stock Alert | Pre-Session | Mid-Session | End-Session | Future Market

Corporate:News | Result

Commodity News:Pre-Session | Mid-Session | End-Session | Bullion | Others

Other News:Foreign Market | Forex | Call Money