Wednesday, December 2, 2015, Agrahayan 18, 1422 BS, Safar 19, 1437 Hijri

World Market And Commodity News
Gold up in US on technical trading
Published :Wednesday, 2 December, 2015,  Time : 12:00 AM  View Count : 19
CHICAGO, Dec 1: Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday on a technical trading bounce, despite a stronger U.S. dollar.
The most active gold contract for February delivery added 9.1 U.S. dollars, or 0.86 per cent, to settle at 1,065.30 dollars per ounce.
In November, based on the most-active contracts, gold futures lost 76.1 dollars, roughly 6.67 per cent. According to MarketWatch, this is their largest monthly per centage drop since June 2013.
October's pending home sales index is up only 0.2 per cent, the National Association of Realtors said Monday. Some analysts noted that this soft data was sharply lower than expectations, boosting demands of gold on Monday.
Additionally, analysts noted that gold hit a key support level then rebounded Monday.
However, the precious metal remains near a six-year-low, as an increase in the Federal Reserve's key interest rate is likely to occur during the December Federal Open Market Commitee (FOMC) meeting on Dec. 15, according to analysts. Expectations were originally for a delay in the rate hike until 2016 but the FOMC meeting in late October confirmed that the Fed wants to raise rates before the end of 2015.
An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest. There has not been an increase in the Fed's interest rate since June 2006, before the beginning of the American financial crisis.
According to the CMEGroup's Fedwatch tool, the current implied probability of a rate hike during the December FOMC meeting are unchanged, at 78 per cent, which is much higher than in recent months, where the chances were as low as 40 per cent. Traders will watch the economic data due out later this week very closely for clues on the Fed's thought process.    ? Agencies

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