Gold Prices Mixed After Strong US Data

October 4, 2018

London (Oct 4)  Gold prices were trading mixed on Thursday and the dollar gained ground after upbeat US economic data released overnight lifted US Treasury yields to levels not seen since 2011 and increased the likelihood of further rate hikes from the Federal Reserve.

Spot gold was marginally higher at USD1,198.78 an ounce after falling around half a % in the previous session. US gold futures were down marginally at USD1,202.00 an ounce.

Markets expect an 80% probability of a Fed rate rise in December and three more rate hikes in 2019, with risks to the upside.

Recent comments from Fed officials and Chair Jerome Powell have been generally hawkish as the US experiences a remarkably positive set of economic circumstances.

Investors also kept an eye on Italy, where the coalition government set budget deficit target of 2.1% of GDP for 2020 and 1.8% of GDP for the following year.

The government needs to obtain European authorities' approval to keep the 2019 deficit level at 2.4%.


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