Gold Rallies After Fed Comments on Rate Hike
Gold prices gained in Asia on Friday as investors parsed comments from Federal Reserve officials for insight on prospects of a rate hike next month.
Gold for December delivery on the New York Mercantile Exchange Comex division rose 0.28% to $1.084 a troy ounce. Silver for December delivery rose 0.18% to $14.285 a troy ounce.
Copper for December delivery gained 0.13% to $2.169 a pound.
Overnight, gold fell to a fresh five and a half year low, as investors continued to stake their bets on a December interest rate hike by the Federal Reserve following comments from a host of influential policymakers from the U.S. central bank on Thursday.
On Thursday, a half dozen monetary policymakers from the Federal Open Market Committee, including chair Janet Yellen and vice chairman Stanley Fischer were scheduled to make public comments ahead of its highly anticipated meeting next month on Dec. 15-16.
In welcoming remarks at the Fed’s conference on Monetary Policy Implementation and Transmission in the Post-Crisis, Yellen declined to address the FOMC’s near-term outlook regarding a potential rate hike or the current state of the U.S. economy.
Instead, Yellen spoke briefly on the importance of assessing how monetary policy impacts the global economy in the post-crisis period.