Gold prices rose for the third day as market participants focus on the US Federal Reserve (Fed) meeting which will commence today till tomorrow, with speculations that the central banks would begin to reduce its monthly asset purchasing program.
The yellow metal futures for February advanced 0.10% to $1,245.64 as 2:31pm in Singapore, while silver contracts for March 2012 edged 0.26% higher at $20.155 an ounce at the same time.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR came in at 818.90 tones on Monday, the lowest since 2009.
The US dollar index, which measures the strength the US dollar against six major currencies, edged 0.05% lower at 80.0370 points.
The yellow metal declined around 26% this year, heading to its first annual drop after 12 consecutive years.
Gold Prices – Federal Reserve Meeting
Investors and market participants are keeping a close eye on the anticipating Federal Reserve two-day meeting, scheduled to begin on Tuesday and conclude on Wednesday. Some analysts are predicting the Fed to push back the cutting of its monthly stimulus till next year, while some are expecting the Fed to announce the tapering of its monthly asset purchasing program
Gold Prices – US Data
In New York, the state’s manufacturing index advanced to 0.98 in December, but was below analysts’ forecast of 5.0, reports from the Federal Reserve Bank of New York confirmed on Monday.
While the industrial production edged 1.1% higher in November month-on-month, slightly higher from the previous month’s record of 0.1% and surpassing analysts’ forecast of 0.6%. Manufacturing climbed 0.6% higher in November, while mining gained 1.7% and utilities rose by 3.9%.
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