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Gold Settles Higher For The Session

Gold Settles Higher For The Session
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Gold futures ended higher on Wednesday, recovering from recent losses, but edged up again after the Federal Reserve reduced its interest rate.

Fading optimism about U.S. and China signing an interim trade deal by mid-November pushed up gold prices.

Gold futures for December ended at $1.496.70 an ounce, gaining $6, or about 0.4%.

On Tuesday, gold futures for December ended down $5.10, or about 0.3%, at $1,490.70 an ounce, after gaining about 0.6% a session earlier.

After the rate cut announcement by the Fed Wednesday afternoon, gold futures for December edged down a bit.

Data released by the Commerce Department showed U.S. economic growth slowed much less than expected in the third quarter.

The Commerce Department said real gross domestic product increased by 1.9% in the third quarter after climbing by 2% in the second quarter. Economists had expected GDP growth to slow to 1.7%.

Payroll processor ADP released a report on Wednesday showing U.S. private sector employment increased by slightly more than anticipated in the month of October.

ADP said private sector employment climbed by 125,000 jobs in October compared to economist estimates for an increase of about 120,000 jobs.

The report also showed private sector job growth in September was downwardly revised to 93,000 from the previously reported addition of 135,000 jobs.

The Federal Reserve voted to cut interest by a quarter point on Wednesday, but a notable change to the accompanying statement suggests the central bank may put further monetary policy easing on hold.

The Fed announced its widely expected to decision to lower the target range for the federal funds rate by 25 basis points.

However, the Fed’s accompanying statement removed a key line indicating the central bank would continue to “act as appropriate to sustain the expansion.”

The line was included in each of the Fed’s three previous statements and was seen as pointing toward a near-term rate cut.

The Fed said it would continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.

The material has been provided by InstaForex Company – www.instaforex.com