Comex Gold Steadies On Ideas Fed May Push Back Tightening Of Rates

New York (Aug 27)  Gold futures have stabilized after early weakness, oscillating on both sides of unchanged late Thursday morning.

The market has drawn some support from ideas that recent financial-market volatility and slower economic growth in other nations like China may dissuade the Federal Reserve from hiking interest rates in the foreseeable future, says Daniel Pavilonis, senior market strategist with RJO Futures.

“People want to see the results from Jackson Hole,” he added, in reference to a Federal Reserve symposium in Wyoming that began Thursday.  Often, policy-makers have signaled actions at this event, he pointed out. Thus, there is a somewhat neutral market tone while traders await news, he continued.

Early in the trading session, gold was on the defensive, reacting to a strong than expected rise in the preliminary gross domestic product (GDP) report and to a rally in global stock markets, said Jim Wyckoff, Kitco technical analyst.

Just after noon EDT, Comex December gold was down $1 to $1,123.60 an ounce after an earlier low of $1,117.

September silver was up 42.4 cents to $14.465 an ounce. Pavilonis suggested this metal was bouncing more since it previously fell harder than gold. However, both platinum and palladium prices surge:  Platinum up $12 at $1007 while Palladium jumped $24 to $565. 

Source: KitcoNews