Oct 12, 2015 (LBO) – Gold prices rose to a seven-week high on Monday with expectations that the Federal Reserve will postpone an expected U.S. interest rate hike, foreign media reports said.
Spot gold was last at 1,165.8/1,166.2 US dollars per ounce, up 10.1 US dollars on Friday’s close. Trade has ranged from 1,155 to 1,166.8 US dollars so far.
The media report said that gold continues to find support from a weaker US dollar. The US dollar index is down 0.15 percent to 94.74 so far on Monday.
The release of minutes of the Federal Reserve’s September meeting last Thursday and with poor job readings in early October raised speculation that the US central bank could wait until next year before tightening monetary policy.
Speaking at the sidelines of the International Monetary Fund’s annual meeting in Peru on Sunday, Fed Vice Chair Stanley Fischer said that conditions may warrant a ‘lift-off’ this year, though this depended on further labour market improvement, the media report said.
New York Fed President William Dudley and Dennis Lockhart of the Atlanta Fed who spoke separately in New York last Friday also reaffirmed that they still expect rate hikes this year but had left it open to postponing the rate lift till 2016 if a global economic slowdown drags down the US economy.
All eyes are also expected on data releases from China this week. China is due to announce its trade balance, foreign direct investment, money supply and new loans, CPI and PPI over the next few days.