Gold price down $0.2 at $1,096.20/ounce; WTI rises 1.2% to $47.98

San Francisco (July 28)  Gold futures finished with a slight loss today as investors awaited the conclusion of the U.S. Federal Reserve’s two-day monetary policy meeting for any clues as to when the central bank will lift interest rates.

The gold market also saw some pressure following a report that showed second-quarter demand hit its lowest level in six years.

August gold fell $0.20 to settle at $1,096.20 an ounce on Comex after closing yesterday with a 1 percent gain.

The Chinese benchmark finished down 1.7 percent today after a volatile trading session that saw the index down as much as 5 percent and up about 1 percent at points.

Gold buyers will be keeping an eye on the Federal Open Market Committee’s two-day meeting, which ends tomorrow. Investors will be waiting to gather more signs of the timing of the first rate hike in nearly a decade, which would impact gold prices since higher rates can diminish the appeal of the precious metal, which doesn’t bear interest.

In other metals trading, September silver meanwhile, settled up 0.3 percent at $14.642 an ounce, after posting a gain a day earlier.

Platinum for October delivery lost 0.3 percent, at $986.40 an ounce, while September palladium picked up 1.4 percent at $621.60 an ounce.

September copper rose 2.1 percent at $2.403 a pound.

In energy trading, West Texas Intermediate crude prices settled higher for the first time in five sessions, as some traders bet that weekly U.S. data will show a decline in oil inventories. But prices for Brent crude finished with a loss.

Another drop in Chinese stock prices and expectations that Iran will soon contribute more oil to the global market kept a lid on any price gains for oil.

September crude settled at $47.98 a barrel on the New York Mercantile Exchange, up 1.2 percent. Prices tapped intraday lows under $47.

Brent crude shed 0.3 percent, to end at $53.30 a barrel on London’s ICE Futures exchange.

Source: ProactiveInvestor