Business Standard

Gold gains on softer dollar, but Fed hike view caps rise

Image

Reuters MANILA

MANILA (Reuters) - Gold edged higher on Tuesday as the dollar weakened, but expectations the Federal Reserve could go ahead with an interest rate increase this month kept gains in check.

FUNDAMENTALS

* Spot gold > was up 0.4 percent at $1,138.41 an ounce by 0046 GMT, after an uneventful session on Monday. Bullion ended August 3.5-percent higher as worries over China's slowing economy sparked safe-haven bids that proved fleeting as the metal has come off a seven-week top.

* There will be more indications on how China's economy fared last month when the government releases gauges for the manufacturing and services sectors this morning.

 

* U.S. gold for December delivery rose half a percent to $1,138.30 an ounce.

* Federal Reserve Vice Chairman Stanley Fischer last week did not rule out the possibility of a rate hike in September even as the world's financial markets have been through wild swings in recent weeks.

* U.S. Mint sales of American Eagle gold coins fell 40 percent in August from July's highest level in more than two years as concern about a slowing Chinese economy lifted bullion prices above a 5-1/2-year low.

* For the top stories on metals and other news, click [TOP/MTL] or [GOL]

MARKET NEWS

* U.S. stock futures fell more than 1 percent in early Asian trade as investors worried a potential rate hike by the Fed later this month could rock the global economy already facing pressure from a slowdown in China.

DATA AHEAD (GMT)

0100 China Official manufacturing PMI Aug

0100 China Official non-manufacturing PMI Aug

0145 China Caixin manufacturing PMI final Aug

0145 China Caixin services PMI Aug

0755 Germany Markit/BME manufacturing PMI Aug

0755 Germany Unemployment rate Aug

0800 Euro zone Markit manufacturing PMI final Aug

0900 Euro zone Unemployment rate Aug

1400 U.S. Construction spending July

1400 U.S. ISM manufacturing PMI Aug

(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 01 2015 | 6:31 AM IST

Explore News