Gold Steadies as China Stimulus Plan Dulls Risk Appetite
Gold prices steadied on Monday amid a risk-off mood driven by an underwhelming China fiscal stimulus, while investors awaited comments from U.S. Federal Reserve officials for hints on its interest rate outlook.
Spot gold edged up 0.1% at $2,658.67 per ounce by 0944 GMT, after hitting its highest since Oct. 4 at $2,666.72 earlier in the session. U.S. gold futures were flat at $2,676.
Stock markets held below last month's record highs, while the Chinese yuan and oil prices weakened as China's broad economic stimulus promises made over the weekend failed to inspire investors.
China is the world's biggest consumer of the safe-haven bullion, which tends to gain when investors sell risky assets.
Traders are now looking out for comments from Fed officials this week for more clues on future interest rate cuts, along with U.S. retail sales data.
Investors see about 88% chance of the Fed cutting rates by 25 basis points in November, as per the CME FedWatch tool. Lower borrowing rates boost the appeal of holding gold, which yields no interest.
Spot silver fell 0.4% to $31.41 per ounce and platinum shed 0.6% to $979.26. Palladium fell 1.5% to $1,053.22.
Source : Reuters
