Gold traded slightly high on Thursday, halting the two-day decline from the highest level in a month on speculation that the Federal Reserve (Fed) could continue to reduce its asset purchases at its next meeting on January 28-29.
Gold Futures rose 0.40% higher to $1,243.30 per ounce at the time of writing, while the silver futures gained 0.48% standing at $20.22 per ounce at the same time.
In December, the Federal Reserve (Fed) decided to reduce its monthly bond purchases to $75 billion from $85 billion. Market participants are focusing on the next Fed meeting scheduled for January 28-29 for more hints.
The US dollar index dropped 0.06% lower to 80.981 points at the time of writing.
Assets in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 789.56 tones lower on Wednesday.
The World Bank raised its global growth forecast on Tuesday, increasing its forecast to 3.2% this year, 3.4% by 2015 and 3.5% the year after.
The US gross domestic product (GDP) is forecasted to increase by 2.8%, while Japan and the eurozone will expand by 1.4% and 1.1% respectively.
The New York Manufacturing Index advanced 12.51 higher in January, rising above analysts forecast of 3.50 and compared to the previous reading of 2.22.
The US producer prices edged 0.4% higher on a month-to-month basis in December, rising from 0.1% recorded in the previous month.
The central bank’s Beige Book business survey, revealed the US economy continuous to grow at a moderate pace across most of the country.
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