Gold Falls as Dollar Rises After Fed Cites Economic Gains

Gold fell as the dollar rebounded after the U.S. Federal Reserve cited “improvement in economic activity and labor market conditions.”

The greenback gained as much as 0.3 percent against a basket of 10 currencies, eroding gold’s appeal as an alternative investment. Earlier, the metal rose as much as 1.1 percent, while the dollar dropped 0.3 percent. Fed policy makers said today they will press on with $85 billion in monthly bond purchases to bolster the economy.

Gold for immediate delivery fell 0.2 percent to $1,342.95 an ounce at 3:07 p.m. New York time. The metal traded around $1,355 prior to the Fed statement at 2 p.m.

This year, gold has slumped 20 percent, heading for the first annual drop since 2000. Some investors lost faith in the metal as a store a value amid a U.S. equity rally to a record and tame inflation.

Gold rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system. Policy makers will delay scaling back the pace of debt purchases until March, according to economists surveyed last week by Bloomberg.

On the Comex in New York, gold futures for delivery in December rose 0.3 percent to settle at $1,349.30 an ounce at 1:41 p.m. The price fell as low as $1,334.50 in electronic trading after the Fed announcement.

(Source: Bloomberg)

Asian Stocks Climb While Silver Slips as Oil Extends Drop

 Asian stocks rose, fueling the benchmark index’s first back-to-back monthly advance since April, amid rising company earnings and with the Federal Reserve projected to maintain the pace of its monetary stimulus today. Oil slipped a second day and precious metals fell.

The MSCI Asia Pacific Index gained 0.2 percent by 10:04 a.m. in Tokyo, set for a 2.8 percent gain in October as Japan’s Topix Index jumped 0.7 percent. Standard & Poor’s 500 Index (SPX) futures fell 0.1 percent after the gauge added 0.6 percent in New York, reaching a record for a third day. Malaysia’s ringgit and South Korea’s won weakened, while the yen held near a 1 1/2-week low against the dollar. Crude in New York slid 0.6 percent as silver and palladium fell at least 0.2 percent.

Baidu Inc. posted better-than-estimated results today after PetroChina Co. and China Petroleum & Chemical Co., the nation’s leading energy companies, boosted profit in the third quarter. Daiwa Securities Group Inc. (8601)’s net income also rose. South Korean industrial output shrank last month, data today showed, while Japanese factory production returned to growth in September. Economists expect the Fed will maintain its $85 billion-a-month in bond purchases at a meeting ending today.

(Source: Bloomberg)

Dollar Set for Monthly Losses Against Most Peers as Fed Meets

The dollar headed for monthly losses against most major peers before U.S. data forecast to show consumer confidence fell to a five-month low and retail sales stalled as the Federal Reserve starts a two-day meeting today.

The greenback traded near an almost two-year low against the euro with a report due today that may show stronger consumer sentiment in France, Europe’s second-largest economy. The Bloomberg U.S. Dollar Index dropped for a second month amid bets the partial government shutdown adds to the case for the Fed to delay paring stimulus. The Aussie dollar fell after Reserve Bank of Australia Governor Glenn Stevens said the currency will probably be “materially lower.”

The dollar was little changed at $1.3783 per euro as of 10:01 a.m. in Tokyo from yesterday, poised for a 1.9 percent drop this month. It touched $1.3832 on Oct. 25, the weakest since November 2011. The U.S. currency slid 0.2 percent to 97.52 yen, set for a 0.8 percent monthly decline.

The 17-nation euro weakened 0.2 percent to 134.39 yen from yesterday. For the month, it’s up 1.1 percent against the Japanese currency. Australia’s dollar declined 0.5 percent to 95.23 U.S. cents, after earlier dropping to 95.15, the lowest since Oct. 16.

The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 1,002.57 from 1,002.27 yesterday. The gauge is down 0.9 percent this month.

(Source: Bloomberg)

Dollar Set for Monthly Losses Against Most Peers as Fed Meets

The dollar headed for monthly losses against most major peers before U.S. data forecast to show consumer confidence fell to a five-month low and retail sales stalled as the Federal Reserve starts a two-day meeting today.

The greenback traded near an almost two-year low against the euro with a report due today that may show stronger consumer sentiment in France, Europe’s second-largest economy. The Bloomberg U.S. Dollar Index dropped for a second month amid bets the partial government shutdown adds to the case for the Fed to delay paring stimulus. The Aussie dollar fell after Reserve Bank of Australia Governor Glenn Stevens said the currency will probably be “materially lower.”

The dollar was little changed at $1.3783 per euro as of 10:01 a.m. in Tokyo from yesterday, poised for a 1.9 percent drop this month. It touched $1.3832 on Oct. 25, the weakest since November 2011. The U.S. currency slid 0.2 percent to 97.52 yen, set for a 0.8 percent monthly decline.

The 17-nation euro weakened 0.2 percent to 134.39 yen from yesterday. For the month, it’s up 1.1 percent against the Japanese currency. Australia’s dollar declined 0.5 percent to 95.23 U.S. cents, after earlier dropping to 95.15, the lowest since Oct. 16.

The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 1,002.57 from 1,002.27 yesterday. The gauge is down 0.9 percent this month.

(Source: Bloomberg)

WTI Crude Fluctuates Before U.S. Industrial Production Data

West Texas Intermediate swung between gains and losses before U.S. economic data that may signal when the U.S. Federal Reserve will begin scaling back monetary stimulus in the world’s biggest crude consumer.

Futures fluctuated in New York after falling 2.9 percent last week, the most in five weeks. A raft of U.S. government data is due this week, including industrial production figures that are forecast to show output rose in September. Iraq’s crude exports last month dropped to 62.1 million barrels amid maintenance, according to an oil ministry spokesman.

WTI for December delivery was at $97.71 a barrel in electronic trading on the New York Mercantile Exchange, down 14 cents at 12:55 p.m. Sydney time. The contract increased 0.8 percent to $97.85 on Oct. 25, trimming its weekly decline. The volume of all futures traded was about 36 percent below the 100-day average.

Brent for December settlement gained 27 cents to $107.20 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $9.49 to WTI futures, up from $9.08 on Oct. 25.

(Source: bloomberg)