Welcome Guest! | World Time






New York

Gold prices edge down as strong US data boosts rate rise view

Thursday,   11-Oct-2018   09:30 AM (IST)

Gold prices inched down on Thursday as robust US data potentially bolstered the chances of multiple US interest rate hikes over the next year. The declines came even as Wall Street suffered its worst drubbing in eight months. Spot gold was down 0.2 per cent at $1,192.41 an ounce. US gold futures were up 0.2 per cent at $1,195.70 an ounce.US producer prices increased 0.2 per cent in September, in line with expectations, while a revision to wholesale inventory estimates for August showed the biggest jump in nearly five years, beating forecasts. Asian share markets sank on Thursday after the falls on Wall Street, a conflagration of wealth that could threaten business confidence and investment across the globe.US Treasury yields fell late on Wednesday in a flight to quality as investors snapped up government bonds amid the sharp sell-off in US stocks. The Fed can likely stop raising US interest rates once they reach about 3 per cent, as long as inflation remains around 2 per cent and the economy is doing well, Chicago Federal Reserve President Charles Evans suggested on Wednesday. European Union Brexit negotiator Michel Barnier said on Wednesday that an agreement with Britain could be "within reach" next week, calling for decisive progress in the talks in time for a summit of all 28 EU leaders. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.21 per cent to 738.99 tonnes on Wednesday.India's gold imports in September dropped more than 14 per cent from a year ago as a rally in local prices due to a depreciating rupee reduced demand in the world's second-biggest consumer of bullion, provisional data from precious metals consultancy GFMS showed.