Gold prices are slightly higher in subdued early U.S. trading Monday.
Analysts have seen some light short covering in the futures market and bargain hunting in the cash market. At the same time, many market players are standing on the sidelines before this week’s highly-anticipated FOMC meeting.
December Comex gold was last up $1.50 at $1,104.80 an ounce.
December Comex silver was last down $0.12 at $14.385 an ounce.
The Federal Open Market Committee meeting on Wednesday and Thursday is the epicenter of attention this week.
A statement and press conference from Fed Chair Janet Yellen are set for Thursday afternoon.
Market analysts have not come to a consensus on whether the central bank will make an interest rate hike for the first time since 2009 at this week’s meeting, or wait until December, or next year.
The U.S. Fed funds futures market presently suggests the Fed will not make a rate hike in September.
Asian stock markets were weaker overnight, as there was more mostly downbeat economic data coming out of China.
China’s industrial output in August was up 6.1%, year-on-year, which was better than July’s 6.0% growth, but lower than the consensus forecast of up 6.6% for August. Fixed asset investment in China during January-August was also lower than expected. However, China’s retail sales in August were higher than expected.
China’s Shanghai gauge was down 2.7% Monday and Japan’s Nikkei stock index was down 1.6% on the day.
U.S. stocks opened little changed on Monday. The S&P 500 opened flat at 1,960. The Dow Jones Industrial Average opened unchanged at 16,427. The Nasdaq Composite began the day up 6 points, or 0.1% at 4,828.
In other news Monday, industrial production in the Euro zone rose 0.6% in July from June and was up 1.9% on the year, which was better than expected.
The dollar was mostly higher against its rivals with EUR/USD plunging 0.28% to 1.1307. GBP/USD hit 1.5396, lower 0.19%.
Credit: mql5.com
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