Gold prices edged lower overnight, trading into the USD $1340 range as a rally in the USD slightly dented demand for the yellow metal
Gold prices edged lower overnight, trading into the USD $1340 range as a rally in the USD slightly dented demand for the yellow metal. Despite a raft of poor data out of the US, including plunging consumer confidence and weak retail sales, traders have trimmed short USD positions in the lead up to the Fed meeting. If the language from the Fed doesn't change at all, we could see risk assets pull back, and even gold could come off a bit - as their has been a build up of 'dovish expectation' lately. Buy the rumour sell the fact could be in play in the next 24 hours Meanwhile, on the physical side, premiums have come down in most of Asia, except India where $100 oz premiums over spot exist, a function of the RBI decisions to try and limit gold inflows, and demand pick up leading into Diwali
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