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MTECHTIPS:-Gold futures rise but remain under pressure

MTECHTIPS:-Gold futures rise but remain under pressure

Gold prices rose in European morning hours on Monday, but they remained within close distance of Friday’s one-month lows as markets were jittery ahead of the Federal Reserve’s policy statement this week. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.41% at $1,107.90. The December contract ended Friday’s session 0.54% lower at $1,103.30 an ounce. Futures were likely to find support at $1,098.20, the low of September 11 and a one-month low and resistance at $1,111.70, the high of September 11. Investors remained cautious amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday. Data on Friday showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to 85.7 from 91.9 in July, compared to forecasts of 91.2. Separately, the Labor Department reported that the producer price index was flat last month after a 0.2% increase in July. Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise. Elsewhere in metals trading, silver futures for December delivery slipped 0.10% to $14.490 a troy ounce, while copper futures for December delivery tumbled 1.11% to $2.426 a pound.



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