Wallstreet Journal MarketWatch
Gold inches higher ahead of Fed minutes - Metals Stocks
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- Published on Tuesday, 19 February 2013 21:56
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Reuters
The precious metal fell $5.30, or 0.3%, to settle at $1,604.20 an ounce on the Comex division of the New York Mercantile Exchange for its fourth straight loss, although it managed to hold above $1,600 through the trading session.
HSBC metal analysts said that gold’s fall on Tuesday came as U.S. stock indexes headed back to all-time highs.
“Besides a shift in investor preference towards risk assets over gold, uncertainty surrounding the Federal Open Market Committee’s quantitative-easing program may have also added pressure to bullion,” the analysts said.
The Fed’s FOMC will release the minutes of its Jan. 29-30 meeting later Wednesday, and the HSBC analysts said that gold may see more downside if the minutes show the central bank continued a discussion from its December meeting over whether quantitative easing may either slow or stop well before the end of 2013.
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“Bullion may face further pressure should the Fed reinforce their earlier statement towards quantitative easing, in our view. We see gold as likely to face further near-term pressure until physical bullion buying from Asia improves,” the analysts said. Read: Could China ride to gold’s rescue this week?
Among other metals futures, March silver /quotes/zigman/8702780 SIH3 +0.45% edged up 10 cents to $29.52 an ounce, while March copper /quotes/zigman/678439 HGH3 +0.30% rose 1 cent to $3.66 a pound.
Platinum for delivery in April /quotes/zigman/8120427 PLJ3 +0.26% declined $3.20 to $1,694.30 an ounce, while March palladium /quotes/zigman/8702805 PAH3 +0.11% rose 75 cents to $764.90 an ounce.
“PGM [platinum group metals] demand may be curbed on reports of lower auto sales in the euro zone,” the HSBC analysts said.
“Automobiles in the euro zone tend to be diesel-fired vehicles which have heavier platinum loadings relative to palladium, when compared to gasoline-fired vehicles. As such, lower European auto demand weighs on platinum more than it does for palladium, in our view,” they said.
US : COMEX Consolidated
Volume: 556,193
Feb. 20, 2013 4:05a
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US : U.S.: Comex
Volume: 12,202
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US : U.S.: Nymex
Volume: 7,486
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US : NYMEX Consolidated
Volume: 496.00
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Sarah Turner is MarketWatch's bureau chief in Sydney. Follow her on Twitter @SarahTurnerMKTW.
