Gold Snaps a 10-Session String of Losses

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Gold futures finished higher on Thursday, ending a string of losses that took prices to their lowest level in a month as investors continued to look for hints on the outcome of the Federal Reserve’s policy meeting next week.

Gold for December delivery picked up $7.30, or 0.7%, to settle at $1,109.30 an ounce on Comex. Prices fell to their lowest settlement level since Aug. 7 on Wednesday, which marked their 10th loss in a dozen sessions, excluding the Monday holiday.

The push higher for gold came amid volatility in U.S. stocks, which turned higher, reversing downward momentum earlier in Thursday’s session. But gold prices may have not yet found a bottom, some analysts say.

Higher rates are a boon for the dollar but make dollar-denominated assets like gold more expensive to purchasers in other currencies.

In other metals, December silver gained 6.9 cents, or 0.5%, to $14.645 an ounce and December high-grade copper ended at $2.447 a pound, up 1.1 cents, or 0.4%.

Source: MarketWatch

Dollar Declines to One-Week Low as U.S. Rate-Rise Odds Decline

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The dollar fell to a one-week low on speculation the Federal Reserve may face headwinds as its considers higher interest rates while central banks in the U.K. and Canada signaled confidence in their economies.

The U.S. currency weakened against the pound as Bank of England policy makers said the U.K. economic outlook remains healthy and market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. The Bank of Canada said Wednesday that the nation’s economic growth remains on pace.

The dollar fell 0.7 percent to $1.1283 per euro as of 2:41 p.m. in New York, reaching the lowest level since Sept. 1. It dropped 0.5 percent versus the Canadian dollar and 0.7 percent against the pound.

Source: Bloomberg        

Asian Stocks Retreat, Paring First Weekly Advance Since July

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Asian stocks fell, paring the regional benchmark measure’s first weekly advance since July. Consumer and industrial shares declined.

The MSCI Asia Pacific Index declined 0.2 percent to 127.17 as of 9:02 a.m. in Tokyo. Most of this week’s 1.9 percent gain came on Sept. 9, when stocks in Japan soared in a rally that analysts said was fueled by short-sellers closing bearish bets. Investors are grappling with heightened global equity volatility as they await the Federal Reserve’s decision next week and watch developments in China.

The Standard & Poor’s 500 Index rebounded from a selloff Thursday amid low trading volumes. Federal Reserve officials in recent weeks, while acknowledging a global equity rout that followed China’s currency devaluation, haven’t been willing to rule out a September interest-rate increase. While rate futures traders have pared bets, many economists are still predicting the Fed will increase its key rate.

Source: Bloomberg

U.S. Stocks Advance Amid Wide Swings Before Fed Policy Decision

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U.S. stocks closed higher, boosted by a rebound in Apple Inc., after swinging in a wide range amid light volume a week before the Federal Reserve makes a decision on interest rates.

The Standard & Poor’s 500 Index gained 0.5 percent to 1,952.23 at 4 p.m. in New York, after rising as much as 1.2 percent.

Investors assessed data today showing fewer Americans lined up last week to file for jobless benefits, highlighting the persistent strength of the labor market. Claims for unemployment insurance fell by 6,000 to 275,000 in the week ended Sept. 5, matching a Bloomberg survey of economists’ forecasts. A report yesterday showed job openings surged to a record in July, as hiring cooled, a sign employers are having a hard time finding qualified workers amid tightening labor market.

As investors anxiously await the Fed’s looming decision on whether to raise rates this month, policy makers at the Bank of England said today that market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. Similar to recent comments from Fed officials, the BOE also stuck to its view that inflation will start to pick up around the turn of the year.

With the timing of the Federal Reserve’s first rate increase since 2006 taking center stage, traders remain confident the Fed will raise borrowing costs this year. They’re pricing in a 28 percent chance the central bank will increase rates next week, down from 48 percent before China’s devaluation, while odds of a move at the December gathering are about 60 percent, according to data compiled by Bloomberg.

Source: Bloomberg

U.S. Stocks Rebound in Choppy Market as Oil Leads Commodity Gain

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U.S. stocks rose, with equities swinging in a wide range amid light volume, as investors assessed data showing a resilient labor market a week before the Federal Reserve’s policy decision. Crude led gains in commodities, while global shares retreated on concern China remains a threat to growth.

The Standard & Poor’s 500 Index rebounded from a selloff yesterday in a market increasingly characterized by sharp shifts in sentiment amid the looming threat of higher interest rates. Equities from Asia to Europe declined on renewed worry U.S. tightening as soon as next week would damp global growth, while a downgrade of Brazil’s debt to junk roiled markets there and underscored weakness in developing nations.

A second day of robust U.S. jobs data bolstered the case for higher rates, while price data from China added to the challenges facing policy makers in Asia’s largest economy. The Bank of England said turmoil on the global financial markets hasn’t shaken its economic outlook, fueling speculation the Fed may also look past recent turbulence at its policy meeting.

While economists predict the Fed will increase its key rate next week, futures traders price the odds of an increase at 28 percent, assuming the effective fed funds rate will average 0.375 percent after the first increase.

In China, comments by Premier Li Keqiang that the country still has “sufficient capability to respond” if growth falls below a reasonable range failed to buttress markets as data showed producer prices fell by the most since 2009.

The Standard & Poor’s 500 Index gained 0.6 percent to 1,953 at 12:39 p.m. in New York, after falling 1.4 percent yesterday. The Dow Jones Industrial Average added 82.74 points, or 0.5 percent to 16,336.31. The Nasdaq Composite Index rose 0.9 percent. Trading in S&P 500 companies was 9 percent below the 30-day average for this time of day.

Source: Bloomberg