Gold Trades Near Two-Week Low as Fed Comments Boost Rates View

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Gold held near a two-week low after U.S. policy makers dropped a pledge to keep borrowing costs low for a œconsiderable time, moving the Federal Reserve closer to raising rates for the first time since 2006 as the dollar rose.

Bullion for immediate delivery traded at $1,189.78 an ounce at 8:21 a.m. in Singapore from $1,189.71 yesterday, when prices fell to $1,183.89, the lowest since Dec. 1, after the Feds change, according to Bloomberg generic pricing.  The metal is set to snap two weeks of gains as slumping energy prices threatened to push inflation further below the U.S. central banks 2 percent target.

Chair Janet Yellen said the Fed is unlikely to move before the end of April after policy makers replaced the considerable-time pledge with a promise to be œpatient. That sent the Bloomberg Dollar Index toward a five-year high and the Standard & Poors 500 Index up by the most since October 2013. Data yesterday showed that U.S. consumer prices rose 1.3 percent, the smallest gain since February with oil at five-year lows.

While the Feds statement made no reference to the Russian currency crisis or other global risks that have roiled financial markets, Yellen said the potential spillover from Russia on the U.S would be small. The ruble fell to a record this week even as the Russian central bank raised interest rates, spurring speculation that the country may sell some of its gold reserves.

Source : Bloomberg

Dollar Gains as Fed’s Yellen Emphasizes 2015 Rate Increase

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The dollar advanced to almost a five-year high as Federal Reserve Chair Janet Yellen stressed that the central bank remains on pace to increase interest rates next year for the first time since 2006.

The greenback extended gains after Yellen said that the shift in guidance means œthe committee considers it unlikely to begin the normalization process for at least the next couple of meetings. Officials held the rate at zero to 0.25 percent, where its been since 2008, while replacing a pledge to keep borrowing costs near zero for a œconsiderable time.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major currencies, added 1 percent to 1,121.34 as of 3:08 p.m. in New York. It closed on Dec. 5 at 1,122.34, the highest since March 2009.

The dollar gained 1.6 percent to 118.29 yen after depreciating to 115.57 yesterday, the weakest since Nov. 17. The U.S. currency strengthened 1.1 percent to $1.2366 per euro. The yen fell 0.5 percent to 146.37 per euro after adding 1.6 percent in the previous two days.

Source : Bloomberg

Japanese Stocks Advance After Fed Pledges Patience on U.S. Rates

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Japanese stocks jumped the most in six weeks as the yen weakened against the dollar after the Federal Reserve said it will be patient on the timing of U.S. interest-rate increases.

The Topix added 2.6 percent to 1,386.62 at 9:02 a.m. in Tokyo, headed for the biggest jump since Nov. 4. All of its 33 industry groups rose. The Nikkei 225 Stock Average surged 2.2 percent to 17,187.13. The yen traded at 118.76 per dollar today after weakening 1.9 percent yesterday. U.S. stocks advanced the most since 2013 as Chair Janet Yellen said the Fed is unlikely to move before the end of April and that borrowing costs will remain low for a œlong time.

Futures on the Standard & Poors 500 Index were little changed today. The underlying U.S. equity measure jumped 2 percent yesterday after the Fed replaced an earlier pledge to keep borrowing costs near zero for a œconsiderable time, and raised its assessment of the labor market.

The U.S. consumer price index dropped 0.3 percent in November, the most since December 2008, after being little changed the prior month, a Labor Department report showed yesterday. The retreat was led by declining fuel costs.

Source : Bloomberg

Asian Stocks Advance After U.S. Share Rally as Fed Vows Patience

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Asian stocks rose, following the biggest surge in U.S. shares since October 2013, after the Federal Reserve pledged patience on interest-rate increases and the yen weakened, boosting Japanese equities.

The MSCI Asia Pacific Index climbed 0.7 percent to 134.55 as of 9:04 a.m. in Tokyo. The measure slumped 2.5 percent the previous three days as a slump in oil and Russias currency stoked concern about global growth. The Fed said it will be patient on the timeline for higher rates, replacing a pledge to keep borrowing costs near zero for a œconsiderable time, even as the economy strengthened. The Standard & Poors 500 Index jumped 2 percent yesterday while the yen slid 1.9 percent against the dollar.

Japans Topix index climbed 2.4 percent. South Koreas Kospi index added 0.6 percent. Australias S&P/ASX 200 Index gained 1.6 percent, while New Zealands NZX 50 Index rose 0.4 percent.

Source : Bloomberg

S&P 500 Menguat Tajam Sejak Oktober 2013 Lalu

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Saham AS rally, memberikan indeks Standard & Poor 500 gain terbesar sejak Oktober 2013 lalu, karena saham energi rebound dan Federal Reserve mengatakan akan bersabar terkait waktu kenaikan suku bunga.

Indeks S & P 500 naik sebesar 2 persen ke level 2,012.84 pukul 04:00 di New York, pasca mengalami koreksi selama tiga sesi. Indeks Dow Jones Industrial Average naik 287,03 poin, atau 1,7 persen, ke level 17,355.90. Volume perdagangan di S & P 500 sebesar 34 persen di atas moving average 30-hari hari ini.

Bank sentral AS mengatakan akan bersabar terkait waktu kenaikan suku bunga pertama sejak tahun 2006 lalu, menggantikan janji untuk menjaga biaya pinjaman mendekati nol untuk "waktu yang cukup," dan meningkatkan penilaian dari pasar tenaga kerja.

Perubahan dalam petunjuk merupakan langkah dalam rencana The Fed untuk keluar dari pelonggaran kebijakan moneter dalam sejarah 100 tahun terakhir. Sementara penurunan tingkat pengangguran yang lebih cepat dari perkiraan mendorong bank sentral untuk menaikkan suku tahun depan, jatuhnya harga minyak dan komoditas membuat laju inflasi di bawah target. (izr)

Sumber: Bloomberg