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Gold, silver drop 1% as Fed rate outlook weighs

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Investing.com -

Investing.com - Gold and silver futures lost more than 1% apiece on Thursday, amid speculation that the Federal Reserve will raise interest rates sooner than expected.

On the Comex division of the New York Mercantile Exchange, gold for December delivery tumbled 1.07%, or $13.80, to trade at $1,281.40 a troy ounce during U.S. morning hours.

Prices fell to a session low of $1,279.20 an ounce earlier, the weakest since June 19.

Futures were likely to find support at $1,276.20, the low from June 19 and resistance at $1,299.30, the high from August 20.

Also on the Comex, silver for September delivery lost 1%, or 19.4 cents, to trade at $19.30 a troy ounce, the lowest since June 12.

Minutes of the Fed's July meeting published Wednesday showed that some officials believe the strengthening recovery and ongoing improvement in the labor market supports a move towards tightening monetary policy.

Other officials want to see further evidence of economic recovery before moving towards raising rates.

Investors now looked ahead to the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, due to begin later Thursday.

The spotlight will be on Fed Chair Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as head of the U.S. central bank.

Other speakers include European Central Bank President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda.

Elsewhere in metals trading, copper for September delivery shed 0.76%, or 2.4 cents, to trade at $3.153 a pound.

Copper declined after data showed that the preliminary reading of China's HSBC manufacturing index fell to a three-month low of 50.3 in August from 51.7 in July and well short of forecasts for 51.5.

The disappointing report sparked fresh fears over a slowdown in the world's largest copper consumer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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