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MTECHTIPS:-Gold mostly steady in Asia in thin trade as China holiday ahead

MTECHTIPS:-Gold mostly steady in Asia in thin trade as China holiday ahead

Gold was mostly steady in Asia Wednesday ahead of a holiday starting in China tomorrow expected to trim trading activity. On the Comex division of the New York Mercantile Exchange, gold for December delivery traded down 0.04% to $1,126.20. Silver futures for December delivery rose 0.05% to $14.580 a troy ounce. Copper for December delivery inched down 0.03% to $2.259 a pound. Overnight, gold futures were relatively flat on Tuesday amid a steady dollar, as the timing of an interest rate hike by the Federal Reserve and continuing fears of a recession in China remained in focus. Investors continue to digest strong indications from the Federal Open Market Committee that it will likely raise its benchmark Federal Funds Rate at either its October or December meeting. On Monday, New York Fed president William Dudley told the Wall Street Journal that the Fed is on track to hike rates before the end of the year and that it could reach its targeted goal for inflation at some point in 2016. It followed hawkish comments from Fed chair Janet Yellen last week on the acceleration of inflationary pressures, as the labor market resumes a push to full employment. In an appearance at the University of Massachusetts at Amherst, Yellen noted that the inflation shortfall is likely to be transitory, as one-off factors such as lower energy prices and weaker imports due to a stronger dollar evaporate. Long-term inflation has remained under the Fed under the Fed’s targeted goal of 2% for every month over the last three years. An interest rate hike is viewed as bearish for gold, which struggles to compete with high-yield bearing assets.

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