XAUUSD for immediate delivery rose as much as 0.3 percent to $1,281.07 an ounce, and traded at $1,280.12 by 3:12 p.m. in Singapore, according to Bloomberg generic pricing. The metal yesterday dropped to $1,273.14, the lowest level since June 18, as minutes of the Fed’s last meeting signaled that policy makers may hike interest rates earlier than expected.
XAUUSD traded above a two-month low before Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi speak today at a meeting of central bankers. Silver, platinum and palladium advanced.
Bullion has declined 1.9 percent this week as the dollar climbed to an 11-month high against the euro on signs that the U.S. is recovering while Europe’s economy falters. Data this month showed U.S. home sales rose and manufacturing accelerated while euro-area growth stagnated in the second quarter.
Speculation that the U.S. central bank would cut stimulus as the economy recovered fueled a 28 percent drop in gold prices last year. The Fed cut monthly bond purchases by $10 billion at each of the last six meetings. Yellen and Draghi are scheduled to speak today at the Kansas City Fed’s symposium in Jackson Hole, Wyoming.
Bullion is still 6.4 percent higher this year as tensions in the Middle East and Ukraine boosted haven demand. Israel vowed to target more Hamas leaders after yesterday killing three commanders, while the U.S. said the militant Islamic State poses an “imminent threat” after the beheading of an American journalist. A convoy carrying humanitarian aid from Russia is poised to start crossing the border to Ukraine.
Gold for December delivery rose 0.4 percent to $1,280 an ounce on the Comex in New York. CME Group Inc. reduced the margin requirements on Comex gold trading, cutting the minimum cash deposit for speculators 15 percent to $5,060 per 100-ounce contract at the close today.
Silver for immediate delivery increased 0.4 percent to $19.5175 an ounce. The metal dropped yesterday to $19.3194 an ounce, the lowest since June 12, and is heading for a sixth weekly loss.
Spot platinum advanced 0.1 percent to $1,422.88 an ounce after prices fell for a 10th day yesterday to complete the longest slump since at least 1987. The metal declined yesterday to $1,413.63 an ounce, the lowest since May 1, and is set for a second weekly decline.
Palladium gained 0.3 percent to $882.64, after climbing to a 13-year high of $902.09 on Aug. 18. The metal is heading for a decrease this week.