Gold prices dip in Asia with Fed language seen crucial for direction
Gold prices dipped in Asia with the market prepared to listen closely to the Fed commentary this week after it reviews rates and in particular language on the impact of expected tax cuts. The Fed meets this week and is widely expected to hike interest rates by a quarter point. The European Central Bank, Bank of England and the Swiss National Bank are also due to hold monetary policy meetings, although no changes are expected. Last week, gold prices fell to a four-month low on Friday and posted the largest weekly fall since May after Friday’s stronger-than-expected U.S. jobs report underlined expectations for a rate hike by the Federal Reserve at its upcoming meeting. The U.S. economy added 228,000 jobs in November, the Labor Department reported, surpassing the 200,000 forecast by economists, while the unemployment rate held steady at 4.1% for a second consecutive month.
The Fed is widely expected to raise interest rates at this week’s monetary policy meeting and is currently seen tightening two to three times next year, but concerns over tepid wage growth could alter the outlook for 2018.
Source: Investing
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