Gold Pares Gains From Two-Week High on Renewed U.S. Rate Concern

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Gold pared gains after reaching an almost two-week high amid renewed concern that the Federal Reserve will still raise U.S. interest rates, even as policy makers cut their outlook for borrowing costs.

Fed officials dropped a pledge to be “patient” in tightening policy in a statement Wednesday, even as they lowered their projections for rates by the end of the year. The dollar rebounded Thursday, climbing as much as 1.5 percent against 10 major peers, on speculation U.S. borrowing costs will rise as other economies stick with monetary easing.

Higher rates cut gold’s allure because the metal generally offers returns only through prices gains, sending investors to assets with better yield prospects such as bonds. Holdings in exchange-traded funds backed by the metal headed for the third straight weekly loss as investors exited gold in anticipation of an increase for borrowing costs.

Gold for immediate delivery climbed 0.3 percent to settle at $1,171.18 an ounce, according to Bloomberg generic pricing. Earlier, the metal rose to $1,177.96, the highest since March 6.

Source : Bloomberg

Dollar Rallies After Fed Outlook Fuels Biggest Slide Since 2009

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The dollar rebounded from its biggest drop in six years amid speculation the Federal Reserve will still raise borrowing costs this year even after cutting its interest-rate projections.

The greenback strengthened against 13 of its 16 major peers after the Fed moved a step closer to higher rates against a backdrop of global easing, led by the European Central Bank and Bank of Japan. Fed Chair Janet Yellen wouldn’t rule out a rate increase as early as June after the central bank removed its commitment to patience on tighter monetary policy Wednesday.

The Bloomberg Dollar Spot Index, a gauge of the currency’s performance against 10 major peers, climbed 1.4 percent to 1,211.18 as of 3:05 p.m. New York time, halting a three-day drop. The gauge reached 1,222.12 on March 13, the highest level based on closing prices going back to 2004.

The U.S. currency strengthened 2 percent to $1.0644 per euro, its first advance in four days. The dollar gained 0.7 percent to 120.94 yen.

Bloomberg’s dollar gauge slumped 1.8 percent on Wednesday, the most since the Fed announced Treasury bond purchases in March 2009, as the U.S. central bank almost halved its expectations for year-end rates. The federal funds rate will be 0.625 percent by the end of 2015, according to Fed members’ estimates, versus a December forecast of 1.125 percent.

Source : Bloomberg

U.S. Stocks Slide After Fed Rally as Energy Shares Retreat

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U.S. stocks fell, after a rally Wednesday on the Federal Reserve’s policy statement, as banks retreated and energy companies fell with the price of oil.

The Standard & Poor’s 500 Index slipped 0.5 percent to 2,089.40 at 4 p.m. in New York. The Nasdaq Composite Index rose 0.2 percent after briefly climbing above the 5,000 level again.

The S&P 500 is on track to go 22 consecutive sessions without back-to-back gains, the longest since a 23-day stretch in June 2010. It never fell four days in a row in 2014.

The dollar rebounded from its biggest drop versus the euro in six years. The Bloomberg Dollar Spot Index, a gauge of the currency’s performance against 10 major peers, gained 1.4 percent, halting a three-day drop.

The S&P 500 climbed 1.2 percent yesterday after the Fed said data suggest economic growth has moderated. The central bank said higher interest rates in April are unlikely and it won’t tighten until it is “reasonably confident” inflation will return to its target and the labor market improves further.

Source : Bloomberg

European Stocks Rise to Highest Since 2000 After Fed Statement

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European stocks climbed to their highest level since 2000, as the Federal Reserve acknowledged a moderation in economic growth, fueling speculation it won’t be in a rush to raise interest rates.

Sixteen of the 19 industry groups on the Stoxx Europe 600 Index advanced, led by energy companies. Royal Dutch Shell Plc rose 1.2 percent, while Premier Oil Plc added 8.1 percent, for the biggest gain on the Stoxx 600.

The Stoxx 600 increased 0.6 percent to 400.98 at 4:30 p.m. in London. Equities climbed yesterday as U.K. shares rallied after a budget presentation and Swedish stocks jumped after a rate cut. The Stoxx 600 has surged 17 percent this year.

The Fed cut its estimate for where the benchmark U.S. interest rate will be by the end of 2015, easing concern that tighter monetary policy would curb demand for riskier assets and sending the dollar soaring.

Source : Bloomberg

U.S. Stocks Decline After Fed Rally as Energy Shares Retreat

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U.S. stocks fell, after a rally Wednesday on the Federal Reserve’s policy statement, as banks retreated and energy companies fell with the price of oil.

Transocean Ltd. and Chesapeake Energy Corp. dropped more than 5.1 percent. Citigroup Inc. and Morgan Stanley fell more than 2.4 percent. The Nasdaq Biotechnology Index rose 1.3 percent. Apple Inc. slipped in its first day in the Dow Jones Industrial Average.

The Standard & Poor’s 500 Index slipped 0.6 percent to 2,088.01 at 12:17 p.m. in New York. The Dow declined 117.16, or 0.7 percent, to 17,959.03 after rising 1.3 percent Wednesday. The Nasdaq Composite Index rose 0.1 percent after earlier approaching the 5,000 level again.

The dollar rebounded from its biggest drop versus the euro in six years. The Bloomberg Dollar Spot Index, a gauge of the currency’s performance against 10 major peers, gained 1.3 percent, halting a three-day drop.

Source : Bloomberg