Gold Settles Higher, Then Tops $1,210 After Fed Minutes

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Gold futures settled higher on Wednesday, then moved up in electronic trading to top $1,210 an ounce after minutes from the Federal Reserve Open Market Committee’s April meeting showed that only a few officials expect an interest-rate hike in June.

Gold for June delivery GCM5, was at $1,211.10 an ounce in electronic trading on Globex after the minutes, after settling at $1,208.70 an ounce, up $2, or 0.2%, on Comex.

The April minutes of the policy-setting FOMC were released shortly after the close of regular metals trading on Comex. Only a “few” Fed officials thought economic data would improve enough to trigger a rate hike at the next meeting in June.

Higher interest rates can support the dollar, which can be bearish for dollar-denominated gold.

Gold on Monday rose to its highest level in more than three months, but gave back some of those gains to finish Tuesday at its lowest level in a week. The yellow metal has been stuck in trading range between resistance at $1,225 an ounce and support at $1,180.

Dollar Remains Higher as Minutes Show Fed in No Rush to Hike

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The dollar remained higher as minutes from the Federal Reserve’s April meeting suggested the central bank is in no hurry to raise interest rates soon.

The U.S. currency fluctuated after policy makers said last month that they didn’t expect to raise rates at their next meeting in June even while concluding that a first-quarter economic slowdown was unlikely to persist, minutes of the meeting show.

The dollar traded at 121.39 yen as of 2:07 p.m. in New York. The U.S. currency traded at $1.1088 per euro.

Source : Bloomberg

Japan’s Topix Extends 2007 High as Fed Minutes Spur Weaker Yen

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Japanese stocks rose, with the Topix index climbing from a 7 1/2-year high, after the yen slid as investors weighed minutes from the Federal Reserve’s latest meeting.

The Topix advanced 0.3 percent to 1,647.83 as of 9:06 a.m. in Tokyo, after yesterday closing at the highest since October 2007. The Nikkei 225 Stock Average added 0.2 percent to 20,242.96. The yen traded at 121.20 per dollar after touching the weakest level since March 17 on Wednesday. Minutes of the Federal Reserve’s last meeting reinforced that interest rates will likely be boosted in the second half of this year, with officials not expecting to raise borrowing costs in June.

E-mini futures on the Standard & Poor’s 500 Index fell 0.2 percent after the underlying U.S. measure slipped 0.1 percent on Wednesday in New York, dragged lower by a selloff in airlines.

Source: Bloomberg

Asian Stocks Rise After Fed Minutes as Investors Await China PMI

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Asian stocks advanced for the first time in three days as investors weighed the minutes of the Federal Reserve’s last meeting and awaited China manufacturing data.

The MSCI Asia Pacific Index rose 0.1 percent to 153.02 as of 9:02 a.m. in Tokyo. The Fed minutes reinforced the view that interest rates will probably be boosted in the second half of this year. China factory activity may show improvement this month, preliminary estimates from HSBC Holdings Plc and Markit Economics due today are expected to show, according to economists surveyed by Bloomberg.

Japan’s Topix index added 0.3 percent. South Korea’s Kospi index was little changed. Australia’s S&P/ASX 200 Index gained 0.2 percent, while New Zealand’s NZX 50 Index lost 0.2 percent. Markets in China and Hong Kong have yet to open.

China’s CSI 300 Index technology gauge on Wednesday jumped 1.5 percent to a record on a Xinhua News Agency report that the government will boost incentives for industries including information technology and robotics.

E-mini futures on the Standard & Poor’s 500 Index fell 0.2 percent. The underlying gauge lost 0.1 percent on Wednesday amid a selloff in airlines.

Source: Bloomberg

U.S. Stocks Little Changed Amid Airline Selloff, Fed Patience

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U.S. stocks closed little changed, with the Standard & Poor’s 500 Index slipping for a second day, as a selloff in airlines offset Federal Reserve meeting minutes that showed officials in no hurry to raise interest rates.

The S&P 500 Index fell 0.1 percent to 2,125.80 at 4 p.m. in New York, after briefly climbing above its all-time high.

Fed officials last month didn’t expect to raise rates at their June meeting even as they concluded that a first-quarter economic slowdown was unlikely to persist, the meeting minutes showed. A “few” members said they anticipated the economy would be ready for a June liftoff.

Source: Bloomberg