Gold held an advance after a Federal Reserve official said that a recent run of weak data cast doubt on the strength of the U.S. economy, clouding the outlook for when the central bank will raise interest rates.
Bullion for immediate delivery traded at $1,193.78 an ounce at 8:09 a.m. in Singapore from $1,193.01 on Tuesday, when prices rose 0.3 percent as the dollar fell, according to Bloomberg generic pricing.
Gold is little changed this year as investors digest U.S. data and policy makers’ remarks to gauge when the Fed will raise borrowing costs. There is value to ‘‘watchful waiting’’ while additional data clarify the economy’s momentum, Fed Reserve Governor Lael Brainard said Tuesday, citing headwinds including a stronger dollar, weakness in Europe and China, and a drop in oil. Recent reports showed gross domestic product shrank in the first quarter, while consumer spending stalled in April.
Brainard’s comments contrast with a May 22 speech by Fed Chair Janet Yellen, who said she expected the economy to improve after first-quarter weakness, making a rate increase appropriate this year. Officials have said they need to see further improvement in the labor market before raising rates, and to be reasonably certain that inflation will move back up toward the Fed’s 2 percent goal.
Gold for August delivery fell 0.1 percent to $1,193.50 an ounce on the Comex.
Silver for immediate delivery was at $16.7895 an ounce from $16.7995 on Tuesday, when prices capped three days of gains. Platinum was little changed at $1,114.53 an ounce, while palladium traded at $768 an ounce from $768.06 on Tuesday.
Source : Bloomberg