Gold Holds Steady Near One-month Low
Gold prices held steady near one-month low on Monday as the dollar hovered near a 16-month high on expectations of a Federal Reserve interest rate rise next month.
Spot gold rose marginally to $1,207.06 per ounce, after having touched a one-month low of $1,205 earlier in the session. U.S. gold futures were up 0.10 percent at $1,207.60 per ounce.
The dollar remained on firm ground after Fed officials hinted last week that rates are likely to rise in December despite recent jitters in financial markets.
The Fed has indicated it is likely to do three more increases next year in order to gradually raise rates to 3 percent or slightly higher.
The outlook for tighter credit was also supported by an unexpectedly big rise in U.S. producer prices in October.
The producer-price index rose a seasonally adjusted 0.6 percent last month from September, coming well above 0.3 percent that analysts had expected on the back of a surge in cost for energy and trade services.
Source: Read Full Article