<a href="http://www.wionews.com/business-economy/gold-rate-stablizes-post-five-month-peak-on-easing-rate-hike-view-182800">Gold prices</a> edged higher on Tuesday, supported by hopes that the US&nbsp;Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session's rally.

Spot gold was up 0.2 per cent at $1,246.62 per ounce, as of 0430 GMT. It touched its highest in nearly five months at $1,250.55 in the prior session.

US&nbsp;gold futures were 0.2 per cent higher at $1,251.4 per ounce.

"Weakening US&nbsp;dollar outlook and very dovish pivots from the Fed, a lot of uncertainty boxed around equity markets... It can still turn quite negative, so this is why gold remains a good hedge against a lot of market risks," said Stephen Innes, APAC trading head at OANDA in Singapore.

"I am very bullish on gold in this setup into 2019."

The dollar index, a measure of the greenback's strength versus a group of six major peers, edged lower after rallying in the previous session as a vote on Brexit deal was postponed.

Investors are now focused on the US&nbsp;Federal Reserve's December 18-19 policy meeting for clues on future rate hikes.

The Fed's plans to continue raising interest rates next year were met with more scepticism on Wall Street on Monday, with futures traders betting on a pause and one major bank partially walking back a hawkish prediction.

"Markets still see an increase in December but even one further hike in 2019 is now being questioned whereas two of them were fully priced in just a month ago," said Ilya Spivak, a currency strategist for DailyFX.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

"Technically, the break of $1,250 will be very significant... $1,250 is a very key point and on the bottom, it's $1,240," OANDA's Innes said.

Meanwhile, hedge funds and money managers trimmed their net short positions in Comex gold and silver contracts in the week to December 4, the US&nbsp;Commodity Futures Trading Commission (CFTC) said on Monday.

Among other precious metals, spot silver was up 0.3 per cent at $14.57 per ounce, while palladium rose 0.3 per cent to $1,221.35.

Platinum was down 0.4 per cent at $782.10 per ounce. Prices had slipped to their lowest since Sept. 10 at $773.50 in the previous session.

Gold prices edged higher on Tuesday, supported by hopes that the US Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session's rally.

Gold prices edged higher on Tuesday, supported by hopes that the US Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session's rally. Spot gold was up 0.2 per cent at $1,246.62 per ounce, as of 0430 GMT. It touched its highest in nearly five months at $1,250.55 in the prior session. US gold futures were 0.2 per cent higher at $1,251.4 per ounce. "Weakening US dollar outlook and very dovish pivots from the Fed, a lot of uncertainty boxed around equity markets... It can still turn quite negative, so this is why gold remains a good hedge against a lot of market risks," said Stephen Innes, APAC trading head at OANDA in Singapore. "I am very bullish on gold in this setup into 2019." The dollar index, a measure of the greenback's strength versus a group of six major peers, edged lower after rallying in the previous session as a vote on Brexit deal was postponed. Investors are now focused on the US Federal Reserve's December 18-19 policy meeting for clues on future rate hikes. The Fed's plans to continue raising interest rates next year were met with more scepticism on Wall Street on Monday, with futures traders betting on a pause and one major bank partially walking back a hawkish prediction. "Markets still see an increase in December but even one further hike in 2019 is now being questioned whereas two of them were fully priced in just a month ago," said Ilya Spivak, a currency strategist for DailyFX. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar. "Technically, the break of $1,250 will be very significant... $1,250 is a very key point and on the bottom, it's $1,240," OANDA's Innes said. Meanwhile, hedge funds and money managers trimmed their net short positions in Comex gold and silver contracts in the week to December 4, the US Commodity Futures Trading Commission (CFTC) said on Monday. Among other precious metals, spot silver was up 0.3 per cent at $14.57 per ounce, while palladium rose 0.3 per cent to $1,221.35. Platinum was down 0.4 per cent at $782.10 per ounce. Prices had slipped to their lowest since Sept. 10 at $773.50 in the previous session.

Gold prices inch higher as dollar softens

Bitcoin flirted with $17,000 on Thursday, triggering a warning the cryptocurrency was like a &quot;train with no brakes&quot; and prompting fresh concern about its looming launch on mainstream markets.

Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT, bitcoin stood at $16,070.

<a href="http://www.wionews.com/photos/a-little-bit-of-coins-bitcoins-explained-via-a-comic-strip-45">The rally came just a day after the virtual currency,</a> which has been used to buy everything from an ice cream to a pint of beer, hit the $12,000 mark for the first time. The eye-popping rise has seen the currency&#39;s value soar more than 50 percent in just one week, and from just $752 in mid-January.

Bitcoin, which came into being in 2009 as a bit of encrypted software, has no central bank backing it and no legal exchange rate.&nbsp;

It has surged dramatically in the past month, driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts, and sometimes more shady users.

But some, including the US Federal Reserve, have warned against dabbling in bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared.

<a href="http://www.wionews.com/business-economy/bitcoin-soars-beyond-15000-climbs-2000-in-under-12-hours-26161">&quot;Bitcoin now seems like a charging train with no brakes,&quot; </a>said Shane Chanel, from Sydney-based ASR Wealth Advisers. &quot;There is an unfathomable amount of new participants piling into the cryptocurrency market.&quot;

But he warned: &quot;Once the hype slows down, we will most certainly see some sort of correction.&quot;

Financial industry concerns&nbsp;

There also are mounting concerns about its introduction into the mainstream financial system after a US regulator last week cleared the way for bitcoin futures to trade on major exchanges, a decision which analysts say has helped spur the recent rally.

The Commodity Futures Trading Commission decision allows bitcoin derivatives to be offered on the Cboe Futures Exchange starting this weekend and on the world&#39;s biggest futures venue, the Chicago Mercantile Exchange (CME), from December 18.

But the Futures Industry Association, which groups some of the world&#39;s biggest derivatives brokerages, criticized the CFTC&#39;s move in a letter to the regulator, saying contracts are being rushed through without properly weighing the risks.

&quot;A more thorough and considered process would have allowed for a robust public discussion among clearing member firms, exchanges and clearing houses,&quot; the association said.

Bitcoin transactions happen when heavily encrypted codes are passed across a computer network.&nbsp;

Goldman Sachs, an FIA member, plans to clear bitcoin futures contracts for some clients, meaning it will serve as intermediary to enable transactions, a spokeswoman said.&nbsp;

&quot;Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process,&quot; she said.&nbsp;

The NiceHash marketplace was meanwhile on Thursday investigating a security breach resulting in the theft of bitcoin.

&quot;Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days,&quot; NiceHash said in a statement.&nbsp;

&quot;In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency.&quot;

Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers.

In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins, worth around $480 million at the time, had disappeared from its vaults.

Bitcoin&#39;s use on the underground Silk Road website, where users could use it to buy drugs and guns, also raised suspicions about the virtual money.

Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT, bitcoin stood at $16,070

Bitcoin flirted with $17,000 on Thursday, triggering a warning the cryptocurrency was like a "train with no brakes" and prompting fresh concern about its looming launch on mainstream markets. Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT, bitcoin stood at $16,070. The rally came just a day after the virtual currency, which has been used to buy everything from an ice cream to a pint of beer, hit the $12,000 mark for the first time. The eye-popping rise has seen the currency's value soar more than 50 percent in just one week, and from just $752 in mid-January. Bitcoin, which came into being in 2009 as a bit of encrypted software, has no central bank backing it and no legal exchange rate. It has surged dramatically in the past month, driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts, and sometimes more shady users. But some, including the US Federal Reserve, have warned against dabbling in bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared. "Bitcoin now seems like a charging train with no brakes," said Shane Chanel, from Sydney-based ASR Wealth Advisers. "There is an unfathomable amount of new participants piling into the cryptocurrency market." But he warned: "Once the hype slows down, we will most certainly see some sort of correction." Financial industry concerns There also are mounting concerns about its introduction into the mainstream financial system after a US regulator last week cleared the way for bitcoin futures to trade on major exchanges, a decision which analysts say has helped spur the recent rally. The Commodity Futures Trading Commission decision allows bitcoin derivatives to be offered on the Cboe Futures Exchange starting this weekend and on the world's biggest futures venue, the Chicago Mercantile Exchange (CME), from December 18. But the Futures Industry Association, which groups some of the world's biggest derivatives brokerages, criticized the CFTC's move in a letter to the regulator, saying contracts are being rushed through without properly weighing the risks. "A more thorough and considered process would have allowed for a robust public discussion among clearing member firms, exchanges and clearing houses," the association said. Bitcoin transactions happen when heavily encrypted codes are passed across a computer network. Goldman Sachs, an FIA member, plans to clear bitcoin futures contracts for some clients, meaning it will serve as intermediary to enable transactions, a spokeswoman said. "Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process," she said. The NiceHash marketplace was meanwhile on Thursday investigating a security breach resulting in the theft of bitcoin. "Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days," NiceHash said in a statement. "In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency." Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers. In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins, worth around $480 million at the time, had disappeared from its vaults. Bitcoin's use on the underground Silk Road website, where users could use it to buy drugs and guns, also raised suspicions about the virtual money.

Bitcoin surges above $16,000 as concerns mount

President Donald Trump has nominated Federal Reserve Governor Jerome &quot;Jay&quot; Powell to lead the US central bank, saying the former investment banker has the wisdom and intelligence to guide the world&#39;s largest economy.

Trump decided not to reappoint current Fed Chair Janet Yellen, the first woman to oversee monetary policy, despite praising her excellent management of the US economy over the past four years.

&quot;He is strong. He&#39;s committed. He&#39;s smart,&quot; Trump said of Powell yesterday during the ceremony in the White House Rose Garden. &quot;He has proven to be a consensus builder.&quot;

&quot;Based on his record I am confident that Jay has the wisdom and leadership to guide our economy through any challenges that our great economy may face.&quot;

Analysts say choosing Powell allows Trump to put his own imprimatur on the central bank with a minimum of disruption.

&quot;Powell allows Trump to change the Fed leadership without changing the basic monetary policy strategy. That strategy has been largely successful,&quot; said University of Oregon economist Tim Duy.

The president&#39;s decision to replace the sitting Fed chair is something no first-term US president had done in 40 years.

He has made it clear he has no problem upsetting tradition, and specifically cited his desire to leave his mark on the Fed during the very public search process. Still, in choosing the 64-year-old Powell, a Republican, Trump took a less radical course.

Powell has echoed the administration&#39;s views in favour of bank deregulation but has supported the Yellen Fed&#39;s very gradual interest rate increases.

Trump has repeatedly hailed the country&#39;s smooth economic progress and Wall Street&#39;s successive rallies, making the prospect of disrupting the status quo at the Fed particularly risky.

Powell is the latest in a string of former investment bankers Trump has tapped for high-profile posts.

He will require Senate confirmation, but he already went through that process when he became a member of the Fed&#39;s board of governors.

Trump noted that his Fed pick has &quot;a unique background of prior government service and business experience.&quot;

&quot;As a result he understands what it takes for our economy to grow,&quot; Trump said.

Powell has a declared personal fortune ranging between about USD 20 million and USD 55 million after nearly a decade at the Washington-based private equity firm Carlyle Group, where fellow Fed Governor Randal Quarles once worked as well.

In another break with tradition, Powell is not a trained economist. Even so Terry Sheehan of Oxford Economics said he has received a working education and is &quot;well qualified&quot; to serve as Fed chair. 
But she warned he may have to defend the Fed&#39;s independence &quot;in a hostile political environment.&quot;

In accepting the nomination, Powell said he would ensure the Fed &quot;remains vigilant and prepared to respond to changes in markets and evolving risks,&quot; but he also cited the independence of the Fed in setting monetary policy.

Trump and Powell offered extensive praise for Yellen, who they said demonstrated judicious economic stewardship during the current recovery.

Yellen congratulated Powell on his nomination and said she would work to ensure a &quot;smooth transition&quot; in February.&nbsp;

President Donald Trump has nominated Federal Reserve Governor Jerome "Jay" Powell to lead the US central bank, saying the former investment banker has the wisdom and intelligence to guide the world's largest economy.

President Donald Trump has nominated Federal Reserve Governor Jerome "Jay" Powell to lead the US central bank, saying the former investment banker has the wisdom and intelligence to guide the world's largest economy. Trump decided not to reappoint current Fed Chair Janet Yellen, the first woman to oversee monetary policy, despite praising her excellent management of the US economy over the past four years. "He is strong. He's committed. He's smart," Trump said of Powell yesterday during the ceremony in the White House Rose Garden. "He has proven to be a consensus builder." "Based on his record I am confident that Jay has the wisdom and leadership to guide our economy through any challenges that our great economy may face." Analysts say choosing Powell allows Trump to put his own imprimatur on the central bank with a minimum of disruption. "Powell allows Trump to change the Fed leadership without changing the basic monetary policy strategy. That strategy has been largely successful," said University of Oregon economist Tim Duy. The president's decision to replace the sitting Fed chair is something no first-term US president had done in 40 years. He has made it clear he has no problem upsetting tradition, and specifically cited his desire to leave his mark on the Fed during the very public search process. Still, in choosing the 64-year-old Powell, a Republican, Trump took a less radical course. Powell has echoed the administration's views in favour of bank deregulation but has supported the Yellen Fed's very gradual interest rate increases. Trump has repeatedly hailed the country's smooth economic progress and Wall Street's successive rallies, making the prospect of disrupting the status quo at the Fed particularly risky. Powell is the latest in a string of former investment bankers Trump has tapped for high-profile posts. He will require Senate confirmation, but he already went through that process when he became a member of the Fed's board of governors. Trump noted that his Fed pick has "a unique background of prior government service and business experience." "As a result he understands what it takes for our economy to grow," Trump said. Powell has a declared personal fortune ranging between about USD 20 million and USD 55 million after nearly a decade at the Washington-based private equity firm Carlyle Group, where fellow Fed Governor Randal Quarles once worked as well. In another break with tradition, Powell is not a trained economist. Even so Terry Sheehan of Oxford Economics said he has received a working education and is "well qualified" to serve as Fed chair. But she warned he may have to defend the Fed's independence "in a hostile political environment." In accepting the nomination, Powell said he would ensure the Fed "remains vigilant and prepared to respond to changes in markets and evolving risks," but he also cited the independence of the Fed in setting monetary policy. Trump and Powell offered extensive praise for Yellen, who they said demonstrated judicious economic stewardship during the current recovery. Yellen congratulated Powell on his nomination and said she would work to ensure a "smooth transition" in February.

Trump taps Jerome Powell to lead US Federal Reserve

The US Federal Reserve held interest rates steady on Wednesday, while also downplaying recent weak economic growth, a signal it will remain on course for gradual rate hikes.

The wording of the Fed&#39;s policy statement strengthens the prospect of two more increases in the benchmarket lending rate this year, likely at the June and September meetings.

The Fed&#39;s policy-setting Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 0.75-1.0 percent, just as most analysts had expected.

The FOMC members discounted the tepid growth in the first quarter -- when GDP expanded by only 0.7 per cent, the slowest in three years -- as a one-time issue, while emphasizing the continued strong labour market and solid hiring.

&quot;The Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace,&quot; the statement read.

The central bank raised rates in March and December, given steady job creation and some signs of mounting price pressures -- and amid the wave of optimism in the early days of President Donald Trump&#39;s term, with his promises of tax cuts and big infrastructure spending.&nbsp;

High bar for inaction 
 
Many economists also discounted the weak first quarter as an anomaly frequently seen in the first three months of the year, and continue to see the need for two more rate moves.&nbsp;

Fed-watchers applauded the nuance of the central bank&#39;s statement in signaling the continued move away from zero interest rates during the financial crisis, a shift known as policy &quot;normalization.&quot;

Barclays economists said although the Fed did not take action, &quot;it did something just as important: in the face of weak data, it signaled that it would maintain its normalization path this year.&quot;&nbsp;

At the same time, the Fed showed no uncertainty about the economy &quot;or hesitation over the path of policy,&quot; Barclays added.

&nbsp;Given that tone, &quot;we believe the bar for inaction in June is high. To derail June, the economy would need to provide proof of fundamental weakness to the FOMC,&quot; the economists said.

Mickey Levy of Berenberg Capital Markets noted that central bankers are not as reactive to every swing in data as they had been in the past two years.

The Fed &quot;appears to be firmly on a policy normalization track and is not reacting to every piece of high-frequency economic data,&quot; Levy said.&nbsp;

&quot;It would take a dramatic slowdown in the economy to derail the Fed&#39;s normalization plans.&quot;

&#39;Solid&#39; job gains 
 
Since the last meeting in March, &quot;The labor market has continued to strengthen even as growth in economic activity slowed,&quot; the FOMC statement said, with &quot;solid&quot; job gains and another decline in the unemployment rate, which now sits at 4.5 per cent.

And while household spending has risen only modestly, &quot;the fundamentals underpinning the continued growth of consumption remained solid.&quot;

Meanwhile, 12-month inflation has held close to the Fed&#39;s two percent target, even while some price measures declined in March.

The Fed&#39;s beige book survey of the economy prepared in advance of this week&#39;s meeting noted reports across the country of firms that had to provide bonuses, and increase wages and benefits, while still struggling to fill openings, even for low-skilled work.

Ian Shepherdson, chief economist of Pantheon Macroeconomics, said the rate hikes will be needed to head off inflation as the job market continues to tighten.&nbsp;

The FOMC members &quot;have not changed their view that the economy can take a &#39;gradual&#39; increase in rates, which will be needed to prevent an overshoot of the inflation target as the labor market tightens,&quot; Sherpherdson said. 
 
(AFP) 
 
&nbsp;

The Fed has kept federal funds rate in a range of 0.75-1.0%, just as most analysts had expected

The US Federal Reserve held interest rates steady on Wednesday, while also downplaying recent weak economic growth, a signal it will remain on course for gradual rate hikes. The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmarket lending rate this year, likely at the June and September meetings. The Fed's policy-setting Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 0.75-1.0 percent, just as most analysts had expected. The FOMC members discounted the tepid growth in the first quarter -- when GDP expanded by only 0.7 per cent, the slowest in three years -- as a one-time issue, while emphasizing the continued strong labour market and solid hiring. "The Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace," the statement read. The central bank raised rates in March and December, given steady job creation and some signs of mounting price pressures -- and amid the wave of optimism in the early days of President Donald Trump's term, with his promises of tax cuts and big infrastructure spending. High bar for inaction Many economists also discounted the weak first quarter as an anomaly frequently seen in the first three months of the year, and continue to see the need for two more rate moves. Fed-watchers applauded the nuance of the central bank's statement in signaling the continued move away from zero interest rates during the financial crisis, a shift known as policy "normalization." Barclays economists said although the Fed did not take action, "it did something just as important: in the face of weak data, it signaled that it would maintain its normalization path this year." At the same time, the Fed showed no uncertainty about the economy "or hesitation over the path of policy," Barclays added. Given that tone, "we believe the bar for inaction in June is high. To derail June, the economy would need to provide proof of fundamental weakness to the FOMC," the economists said. Mickey Levy of Berenberg Capital Markets noted that central bankers are not as reactive to every swing in data as they had been in the past two years. The Fed "appears to be firmly on a policy normalization track and is not reacting to every piece of high-frequency economic data," Levy said. "It would take a dramatic slowdown in the economy to derail the Fed's normalization plans." 'Solid' job gains Since the last meeting in March, "The labor market has continued to strengthen even as growth in economic activity slowed," the FOMC statement said, with "solid" job gains and another decline in the unemployment rate, which now sits at 4.5 per cent. And while household spending has risen only modestly, "the fundamentals underpinning the continued growth of consumption remained solid." Meanwhile, 12-month inflation has held close to the Fed's two percent target, even while some price measures declined in March. The Fed's beige book survey of the economy prepared in advance of this week's meeting noted reports across the country of firms that had to provide bonuses, and increase wages and benefits, while still struggling to fill openings, even for low-skilled work. Ian Shepherdson, chief economist of Pantheon Macroeconomics, said the rate hikes will be needed to head off inflation as the job market continues to tighten. The FOMC members "have not changed their view that the economy can take a 'gradual' increase in rates, which will be needed to prevent an overshoot of the inflation target as the labor market tightens," Sherpherdson said. (AFP)

US Federal Reserve keeps key lending rate unchanged

The dollar gained Wednesday after the Federal Reserve signaled it was on track to gradually lift interest rates, raising expectations it will again act in June.

The wording of the Fed&#39;s policy statement strengthens the prospect of two more increases in the benchmark lending rate this year, boosting the dollar against the euro and other major currencies.

Global equity markets were mixed. The Dow finished slightly higher, while the S&amp;P 500 and Nasdaq both fell modestly. Frankfurt rose modestly, while London and Paris dipped.

The Fed gave a generally upbeat outlook on the US economy, saying that some weak data in the first quarter were &quot;likely to be transitory&quot; and predicting that economic activity would expand &quot;at a moderate pace.&quot;

Several analysts said the statement clears the way for the US central bank to lift rates next month, although that partly depends on US data. A key release comes Friday with issuing of the US jobs report for April.

&quot;Given the tone of the statement, we believe the bar for inaction in June is high,&quot; a note from Barclays said. &quot;The committee seems eager to look through any weakness and has, at long last, reached a consensus, in our view, that a gradual pace of rate hikes this year is warranted.&quot;

The euro was down against the dollar ahead of Sunday&#39;s second round of France&#39;s presidential election, in which moderate Emmanuel Macron is expected to beat his far-right, anti-EU opponent Marine Le Pen. The two candidates traded insults in a heated TV debate on Wednesday ahead of this weekend&#39;s runoff.

Crude prices remained under pressure after the US government reported a much smaller fall in oil stocks than analysts had expected.

In earnings news, Apple shed 0.3 percent after reporting a 4.9 per cent rise in second-quarter profit to $11 billion. But iPhone sales came in slightly lower than in the year-ago period.

Media shares fell sharply following results from Time Warner that were generally strong, but included disappointing advertising revenue at its Turner broadcasting division. Analysts worry that the growth of streaming services is hitting broadcasting profits.

Disney lost 2.4 per cent, Twenty-First Century Fox, 5.1 per cent and Viacom, 7.3 per cent. All three will report earnings in the coming days.

French oil giant Total meanwhile lost the top market capitalization spot in the Paris CAC 40 index on Wednesday, making way for the luxury behemoth LVMH.

Key figures around 2100 GMT

New York - Dow: UP less than 0.1 per cent at 20,957.90 (close)

New York - S&amp;P 500: DOWN 0.1 per cent at 2,388.13 (close)

New York - Nasdaq: DOWN 0.4 per cent at 6,072.55 (close)

London - FTSE 100: DOWN 0.2 per cent at 7,234.53 points(close)

Frankfurt - DAX 30: UP 0.2 per cent at 12,527.84 (close)

Paris - CAC 40: DOWN 0.1 per cent at 5,301.00 (close)

EURO STOXX 50: UP 0.2 per cent at 3,586.25

Shanghai - Composite: DOWN 0.3 per cent at 3,135.35 (close)

Tokyo - Nikkei 225: Closed for holiday

Hong Kong - Hang Seng: Closed for holiday

Euro/dollar: DOWN at $1.0887 from $1.0925 at 2050 GMT

Pound/dollar: DOWN at $1.2873 from $1.2932&nbsp;

Dollar/yen: UP at 112.67 yen from 112.04 yen

Oil - Brent North Sea: UP 33 cents at $50.79 per barrel

Oil - West Texas Intermediate: UP 16 cents at $47.82 per barrel&nbsp;

(Reuters) 
&nbsp;

The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmark lending rate this year

The dollar gained Wednesday after the Federal Reserve signaled it was on track to gradually lift interest rates, raising expectations it will again act in June. The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmark lending rate this year, boosting the dollar against the euro and other major currencies. Global equity markets were mixed. The Dow finished slightly higher, while the S&P 500 and Nasdaq both fell modestly. Frankfurt rose modestly, while London and Paris dipped. The Fed gave a generally upbeat outlook on the US economy, saying that some weak data in the first quarter were "likely to be transitory" and predicting that economic activity would expand "at a moderate pace." Several analysts said the statement clears the way for the US central bank to lift rates next month, although that partly depends on US data. A key release comes Friday with issuing of the US jobs report for April. "Given the tone of the statement, we believe the bar for inaction in June is high," a note from Barclays said. "The committee seems eager to look through any weakness and has, at long last, reached a consensus, in our view, that a gradual pace of rate hikes this year is warranted." The euro was down against the dollar ahead of Sunday's second round of France's presidential election, in which moderate Emmanuel Macron is expected to beat his far-right, anti-EU opponent Marine Le Pen. The two candidates traded insults in a heated TV debate on Wednesday ahead of this weekend's runoff. Crude prices remained under pressure after the US government reported a much smaller fall in oil stocks than analysts had expected. In earnings news, Apple shed 0.3 percent after reporting a 4.9 per cent rise in second-quarter profit to $11 billion. But iPhone sales came in slightly lower than in the year-ago period. Media shares fell sharply following results from Time Warner that were generally strong, but included disappointing advertising revenue at its Turner broadcasting division. Analysts worry that the growth of streaming services is hitting broadcasting profits. Disney lost 2.4 per cent, Twenty-First Century Fox, 5.1 per cent and Viacom, 7.3 per cent. All three will report earnings in the coming days. French oil giant Total meanwhile lost the top market capitalization spot in the Paris CAC 40 index on Wednesday, making way for the luxury behemoth LVMH. Key figures around 2100 GMT New York - Dow: UP less than 0.1 per cent at 20,957.90 (close) New York - S&P 500: DOWN 0.1 per cent at 2,388.13 (close) New York - Nasdaq: DOWN 0.4 per cent at 6,072.55 (close) London - FTSE 100: DOWN 0.2 per cent at 7,234.53 points(close) Frankfurt - DAX 30: UP 0.2 per cent at 12,527.84 (close) Paris - CAC 40: DOWN 0.1 per cent at 5,301.00 (close) EURO STOXX 50: UP 0.2 per cent at 3,586.25 Shanghai - Composite: DOWN 0.3 per cent at 3,135.35 (close) Tokyo - Nikkei 225: Closed for holiday Hong Kong - Hang Seng: Closed for holiday Euro/dollar: DOWN at $1.0887 from $1.0925 at 2050 GMT Pound/dollar: DOWN at $1.2873 from $1.2932 Dollar/yen: UP at 112.67 yen from 112.04 yen Oil - Brent North Sea: UP 33 cents at $50.79 per barrel Oil - West Texas Intermediate: UP 16 cents at $47.82 per barrel (Reuters)

Dollar gains as Fed stays on track for gradual rate hikes

Curbing immigration, as US President Donald Trump appears intent on doing, could slow already sluggish US economic growth, Federal Reserve Chair Janet Yellen cautioned Tuesday.

With the US population ageing, the flow of new workers from abroad has been an important factor in keeping the economy expanding, Yellen said in her first testimony before Congress since Trump took office last month.

While she declined to comment on specific immigration policies, Yellen said the pool of available workers has been growing slowly &quot;and immigration has been an important source of labor force growth&quot;.

&quot;So slowing the pace of immigration probably would slow the growth rate of the economy,&quot; she added.

She called the 1.9 percent US growth rate last year &quot;disappointing,&quot; and emphasized that productivity -- the ability of workers to produce more goods and services -- has lagged.

&quot;We have an aging population and labor force growth is relatively slow, and productivity growth in recent years has been depressingly slow,&quot; which keeps economic growth low, Yellen said.

Trump&#39;s early days in office have been marked by controversy over an order barring entry to nationals from seven Muslim-majority countries, since blocked by the courts, as well as nationwide raids to scoop up and deport illegal immigrants with criminal records.

Yellen, however, said specific immigration policies are &quot;for Congress and the administration to decide&quot;.

(AFP)

With the US population ageing, flow of foreign workers has been an important factor in keeping the economy expanding: Yellen

Curbing immigration, as US President Donald Trump appears intent on doing, could slow already sluggish US economic growth, Federal Reserve Chair Janet Yellen cautioned Tuesday. With the US population ageing, the flow of new workers from abroad has been an important factor in keeping the economy expanding, Yellen said in her first testimony before Congress since Trump took office last month. While she declined to comment on specific immigration policies, Yellen said the pool of available workers has been growing slowly "and immigration has been an important source of labor force growth". "So slowing the pace of immigration probably would slow the growth rate of the economy," she added. She called the 1.9 percent US growth rate last year "disappointing," and emphasized that productivity -- the ability of workers to produce more goods and services -- has lagged. "We have an aging population and labor force growth is relatively slow, and productivity growth in recent years has been depressingly slow," which keeps economic growth low, Yellen said. Trump's early days in office have been marked by controversy over an order barring entry to nationals from seven Muslim-majority countries, since blocked by the courts, as well as nationwide raids to scoop up and deport illegal immigrants with criminal records. Yellen, however, said specific immigration policies are "for Congress and the administration to decide". (AFP)

Curbing immigration could slow down economic growth: US Federal Reserve chair

The US Federal Reserve raised interest rates by a quarter point on Wednesday and signalled a faster pace of increases in 2017 as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation.

The rate increase, regarded as a virtual certainty by financial markets in the wake of a string of generally strong economic reports, raised the target federal funds rate 25 basis points to between 0.50 per cent and 0.75 per cent.

&quot;In view of realized and expected labour market conditions and inflation, the committee decided to raise the target range,&quot; the central bank&#39;s policy-setting committee said in its unanimous statement after a two-day meeting.

&quot;Job gains have been solid in recent months and the unemployment rate has declined,&quot; the Fed said, noting that market-based measures of inflation compensation had moved up &quot;considerably.&quot;

More significant was a fresh batch of Fed policymaker forecasts that indicated the current once-a-year pace of rate increases will accelerate next year.

With President-elect Donald Trump planning a simultaneous round of tax cuts and increased spending on infrastructure, central bank policymakers shifted their outlook to one of slightly faster growth, lower unemployment and inflation just under the Fed&#39;s 2 per cent target.

The Fed&#39;s median outlook for rates rose to three quarter-point increases in 2017 from two as of September. That would be followed by another three increases in both 2018 and 2019 before the rate levels off at a long-run &quot;normal&quot; 3.0 per cent.

That normal level is slightly higher from three months ago, a sign that the Fed feels the economy is still gaining traction.

The Fed continued to describe that pace as &quot;gradual,&quot; keeping policy still slightly loose and supporting some further improvement in the job market. It sees unemployment falling to 4.5 per cent next year and remaining at that level, which is considered to be close to full employment.

Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. ET (1930 GMT) to elaborate on the decision.

Trump impact

US bond yields had already begun moving higher following the election and as expectations of the Fed rate increase solidified. By the start of this week, trading in fed funds futures assigned a greater than 95 per cent likelihood to a rate hike, according to data compiled by the CME Group.

All 120 economists in a recent Reuters poll had expected a rate hike on Wednesday.

In the weeks following Trump&#39;s November 8 victory, Fed policymakers have said his proposals could push the economy into a higher gear in the short run. Even though the details of the Republican businessman&#39;s plans remain uncertain, Wednesday&#39;s statement marked a rare case in the post-crisis era in which the Fed moved its interest rate outlook higher.

Risks to the outlook remain &quot;roughly balanced&quot; between factors that could slow or accelerate the economy beyond what the central bank anticipates, the Fed said, no change from the November assessment.

The rate increase was the first since last December and only the second since the 2007-2009 financial crisis, when the Fed cut rates to near zero and deployed other tools such as massive bond purchases to stabilise the economy.

(Reuters) 
&nbsp;

The rate increase from the previous range of 0.25 to 0.50% is the first hike since December 2015 and only the second in a decade

The US Federal Reserve raised interest rates by a quarter point on Wednesday and signalled a faster pace of increases in 2017 as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation. The rate increase, regarded as a virtual certainty by financial markets in the wake of a string of generally strong economic reports, raised the target federal funds rate 25 basis points to between 0.50 per cent and 0.75 per cent. "In view of realized and expected labour market conditions and inflation, the committee decided to raise the target range," the central bank's policy-setting committee said in its unanimous statement after a two-day meeting. "Job gains have been solid in recent months and the unemployment rate has declined," the Fed said, noting that market-based measures of inflation compensation had moved up "considerably." More significant was a fresh batch of Fed policymaker forecasts that indicated the current once-a-year pace of rate increases will accelerate next year. With President-elect Donald Trump planning a simultaneous round of tax cuts and increased spending on infrastructure, central bank policymakers shifted their outlook to one of slightly faster growth, lower unemployment and inflation just under the Fed's 2 per cent target. The Fed's median outlook for rates rose to three quarter-point increases in 2017 from two as of September. That would be followed by another three increases in both 2018 and 2019 before the rate levels off at a long-run "normal" 3.0 per cent. That normal level is slightly higher from three months ago, a sign that the Fed feels the economy is still gaining traction. The Fed continued to describe that pace as "gradual," keeping policy still slightly loose and supporting some further improvement in the job market. It sees unemployment falling to 4.5 per cent next year and remaining at that level, which is considered to be close to full employment. Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. ET (1930 GMT) to elaborate on the decision. Trump impact US bond yields had already begun moving higher following the election and as expectations of the Fed rate increase solidified. By the start of this week, trading in fed funds futures assigned a greater than 95 per cent likelihood to a rate hike, according to data compiled by the CME Group. All 120 economists in a recent Reuters poll had expected a rate hike on Wednesday. In the weeks following Trump's November 8 victory, Fed policymakers have said his proposals could push the economy into a higher gear in the short run. Even though the details of the Republican businessman's plans remain uncertain, Wednesday's statement marked a rare case in the post-crisis era in which the Fed moved its interest rate outlook higher. Risks to the outlook remain "roughly balanced" between factors that could slow or accelerate the economy beyond what the central bank anticipates, the Fed said, no change from the November assessment. The rate increase was the first since last December and only the second since the 2007-2009 financial crisis, when the Fed cut rates to near zero and deployed other tools such as massive bond purchases to stabilise the economy. (Reuters)

US Fed raises key interest rate by 0.25 points, signals more increases

The Indian rupee has clocked its record low&nbsp;of 68.86 against the US dollar. Just yesterday, we saw a sharp nine-month low set in. This has seen a decline in the equity markets as well in the intra-day trading session.&nbsp;

What has really triggered this depreciation of rupee against the dollar?

The rupee has plunged close to 3 per cent since US President-elect Donald Trump&#39;s victory. The foreign institutional investors have pulled out of bonds despite the bond rally on the back of 4 per cent fall in the yield differencial between the American and Indian government securities. The FII holdings in government and corporate bonds have dropped by 1.4 millions dollars in November and 1.7 dollars have been pulled out of Indian equities by FII&#39;s in the same period. The dollar index rally is almost close to a 14-year high.&nbsp;

The expectation of an interest rate hike by the US Federal Reserve is another reason why the rupee has come under pressure. The interest rate hike has strengthened the dollar.&nbsp;

The US bond yields have seen a sharp increase which leads global investors to pull out of India and redirect these funds into US bonds which fetch them a higher rate of return on their investment.&nbsp;

Now this is just a global factor. There are multiple domestic factors that are responsible for such volatility on this counter.

Most brokerage reports have reduced their earnings estimate for the next quarter and even H2FY17. FII&#39;s have reduced their exposure in equities and debt market. The value of portfolios for most investors and especially FII&#39;s stands to be in jeopardy as FII&#39;s now get lower return in dollar terms against the rupee. This also means that the demand curve of dollar rises, further weakening the rupee.&nbsp;

Rupee essentially in the past one to two months according to brokerage reports has outperformed other currencies of emerging markets. Hence, experts feel this could have well been overvalued to begin with.&nbsp;

It has been observed that the Reserve Bank of India is historically known to intervene to curb volatility. If the weakness on the currency&nbsp;is in line with the momentum with other weakening currencies, the RBI may not interfere much.&nbsp;

The weakening rupee can also be a deterrent&nbsp;for the RBI to cut the repo rate.&nbsp; 
&nbsp;

(WION)

The Indian rupee has clocked its record low?of 68.86 against the US dollar

The Indian rupee has clocked its record low of 68.86 against the US dollar. Just yesterday, we saw a sharp nine-month low set in. This has seen a decline in the equity markets as well in the intra-day trading session. What has really triggered this depreciation of rupee against the dollar? The rupee has plunged close to 3 per cent since US President-elect Donald Trump's victory. The foreign institutional investors have pulled out of bonds despite the bond rally on the back of 4 per cent fall in the yield differencial between the American and Indian government securities. The FII holdings in government and corporate bonds have dropped by 1.4 millions dollars in November and 1.7 dollars have been pulled out of Indian equities by FII's in the same period. The dollar index rally is almost close to a 14-year high. The expectation of an interest rate hike by the US Federal Reserve is another reason why the rupee has come under pressure. The interest rate hike has strengthened the dollar. The US bond yields have seen a sharp increase which leads global investors to pull out of India and redirect these funds into US bonds which fetch them a higher rate of return on their investment. Now this is just a global factor. There are multiple domestic factors that are responsible for such volatility on this counter. Most brokerage reports have reduced their earnings estimate for the next quarter and even H2FY17. FII's have reduced their exposure in equities and debt market. The value of portfolios for most investors and especially FII's stands to be in jeopardy as FII's now get lower return in dollar terms against the rupee. This also means that the demand curve of dollar rises, further weakening the rupee. Rupee essentially in the past one to two months according to brokerage reports has outperformed other currencies of emerging markets. Hence, experts feel this could have well been overvalued to begin with. It has been observed that the Reserve Bank of India is historically known to intervene to curb volatility. If the weakness on the currency is in line with the momentum with other weakening currencies, the RBI may not interfere much. The weakening rupee can also be a deterrent for the RBI to cut the repo rate. (WION)

What has really triggered this depreciation of rupee against the dollar?

US Federal Reserve Chair Janet Yellen said that she will serve her full term despite President-elect Donald Trump&#39;s criticism of her performance in the past.

&quot;I was confirmed by the Senate to a four-year term, which ends at the end of January of 2018, and it is fully my intention to serve out that term,&quot; Yellen told lawmakers on Thursday before the Joint Economic Committee of US Congress, Xinhua news agency reported.

Yellen spoke of the importance of central bank independence in her first public remarks after Trump&#39;s election. &quot;We have really seen terrible economic outcomes in countries where central banks have been subject to political pressure,&quot; she said.

&quot;It&#39;s critically important that a central bank have the ability to make judgments about how best to pursue those goals while being accountable for explaining its decisions and transparent in its decision-making,&quot; Yellen added.

Trump had criticised Yellen during the presidential campaign for maintaining low interest rates to support President Obama and create a &quot;false&quot; economy.

He had also spoken of replacing Yellen with a Republican after her term expires in 2018.

Markets were expecting a fiscal stimulus package from the Trump administration and the Republican-dominated Congress, Yellen was reported as saying.

An increase in interest rates could &quot;become appropriate relatively soon&quot; if incoming data provide further evidence of continued progress, she said. It thus raised market expectations of a rate hike at the Fed&#39;s next policy meeting on December 13-14.

Yellen said that if the central bank delays rate hikes for too long, it could force the Fed to tighten rates abruptly and could encourage excessive risk-taking and undermine financial stability.&nbsp;

(WION with inputs from agencies)

Trump had criticised Yellen for maintaining low interest rates to support President Obama and create a 'false' economy

US Federal Reserve Chair Janet Yellen said that she will serve her full term despite President-elect Donald Trump's criticism of her performance in the past. "I was confirmed by the Senate to a four-year term, which ends at the end of January of 2018, and it is fully my intention to serve out that term," Yellen told lawmakers on Thursday before the Joint Economic Committee of US Congress, Xinhua news agency reported. Yellen spoke of the importance of central bank independence in her first public remarks after Trump's election. "We have really seen terrible economic outcomes in countries where central banks have been subject to political pressure," she said. "It's critically important that a central bank have the ability to make judgments about how best to pursue those goals while being accountable for explaining its decisions and transparent in its decision-making," Yellen added. Trump had criticised Yellen during the presidential campaign for maintaining low interest rates to support President Obama and create a "false" economy. He had also spoken of replacing Yellen with a Republican after her term expires in 2018. Markets were expecting a fiscal stimulus package from the Trump administration and the Republican-dominated Congress, Yellen was reported as saying. An increase in interest rates could "become appropriate relatively soon" if incoming data provide further evidence of continued progress, she said. It thus raised market expectations of a rate hike at the Fed's next policy meeting on December 13-14. Yellen said that if the central bank delays rate hikes for too long, it could force the Fed to tighten rates abruptly and could encourage excessive risk-taking and undermine financial stability. (WION with inputs from agencies)

US Federal Reserve chair Yellen to complete term despite Trump's criticism

The US Federal Reserve Chair Janet Yellen said on Thursday that an interest rate hike can be expected &quot;relatively soon&quot; if economic data gives further evidence of progress in the economy.&nbsp;

In November meeting, Fed policymakers judged that the case for a rate hike had strengthened but the increase will only be gradual, keeping in mind the slowly improving labour market and rising inflation.&nbsp;

The experts noted that the market conditions had improved which would push inflation toward the Fed&#39;s 2 per cent target. The lawmakers on the Federal Open Market Committee, which includes members of both the House and Senate, will now have an opportunity to question Yellen before the decision is taken.&nbsp;

Yellen said there is still room for improvement in the labour market but the Fed cannot delat raising rates for too long. Keeping rates low &quot;for too long could also encourage excessive risk-taking and ultimately undermine financial stability,&quot; she said.

(WION with inputs from agencies) 
&nbsp;

Chair Yellen said according to the Fed experts the economy appeared on track to grow moderately, allowing for a hike 'relatively soon'

The US Federal Reserve Chair Janet Yellen said on Thursday that an interest rate hike can be expected "relatively soon" if economic data gives further evidence of progress in the economy. In November meeting, Fed policymakers judged that the case for a rate hike had strengthened but the increase will only be gradual, keeping in mind the slowly improving labour market and rising inflation. The experts noted that the market conditions had improved which would push inflation toward the Fed's 2 per cent target. The lawmakers on the Federal Open Market Committee, which includes members of both the House and Senate, will now have an opportunity to question Yellen before the decision is taken. Yellen said there is still room for improvement in the labour market but the Fed cannot delat raising rates for too long. Keeping rates low "for too long could also encourage excessive risk-taking and ultimately undermine financial stability," she said. (WION with inputs from agencies)

US Federal Reserve hints at interest rate hike next month

Global investors are awaiting the outcomes of the US Federal Reserve policy meeting that began on Tuesday.&nbsp; 
 
Policy-settling Federal Open Market Committee is in the same position it was in each of its five previous meetings this year, owing to weak inflation and consumer spending data.&nbsp; 
 
Federal Reserve chair Janet Yellen made encouraging remarks in August that conditions were ripe for an increase, leading the markets to believe that the benchmark federal funds rate would be lifted this week, from its current 0.25-0.50 percent level. 
 
But weak economic data since then has led widespread expectation that the Federal Reserve will keep interest rates locked at an ultra-low level. 
 
&quot;It seems like every time the Fed places a rate hike &#39;on the table,&#39; the economic data quickly weaken, making the chances of an actual rise ever rockier. So it appears set to go with September,&quot; said Pedro da Costa of the Peterson Institute for International Economics. 
 
The Fed has struggled to get away from its extraordinarily loose monetary policy dating back to the 2008 crisis. But the US and global economic uncertainty continue to bind its hands.&nbsp; 
 
&quot;We do not expect a change in Fed policy, and we continue to forecast no policy rate changes for the balance of the year,&quot; said Jason Schenker of Prestige Economics in a client note. 
 
Few expect a rate hike at the end of the two-day meeting on Wednesday. Most analysts were setting their sights on an increase possibly at the December meeting.&nbsp; 
 
(WION with inputs from agencies) 
&nbsp;

Analysts say the tepid economic growth has left no room for changes in the Fed policy and the rates will likely remain at ultra-low level

Global investors are awaiting the outcomes of the US Federal Reserve policy meeting that began on Tuesday. Policy-settling Federal Open Market Committee is in the same position it was in each of its five previous meetings this year, owing to weak inflation and consumer spending data. Federal Reserve chair Janet Yellen made encouraging remarks in August that conditions were ripe for an increase, leading the markets to believe that the benchmark federal funds rate would be lifted this week, from its current 0.25-0.50 percent level. But weak economic data since then has led widespread expectation that the Federal Reserve will keep interest rates locked at an ultra-low level. "It seems like every time the Fed places a rate hike 'on the table,' the economic data quickly weaken, making the chances of an actual rise ever rockier. So it appears set to go with September," said Pedro da Costa of the Peterson Institute for International Economics. The Fed has struggled to get away from its extraordinarily loose monetary policy dating back to the 2008 crisis. But the US and global economic uncertainty continue to bind its hands. "We do not expect a change in Fed policy, and we continue to forecast no policy rate changes for the balance of the year," said Jason Schenker of Prestige Economics in a client note. Few expect a rate hike at the end of the two-day meeting on Wednesday. Most analysts were setting their sights on an increase possibly at the December meeting. (WION with inputs from agencies)

US Federal Reserve meeting opens, markets forecast no policy rate hike

Gold&nbsp;rose today&nbsp;as the dollar slid after a weaker-than-expected US&nbsp;jobs data trimmed expectations of a Federal Reserve rate hike in September.

US&nbsp;employment growth slowed more than expected in August after two straight months of robust gains and wages were tepid.

&quot;The disappointment in the nonfarm payrolls data has been translated into optimism for&nbsp;goldprices at the moment. We can expect prices to further rebound to $1,350 in a short-term,&quot; said Mark To, head of research at Hong Kong&#39;s Wing Fung Financial Group.

Spot&nbsp;gold&nbsp;was up about 0.2 per cent at $1,326.83 per ounce by 0652 GMT. The metal rose as much as over 1 per cent on Friday.

U.S.&nbsp;gold&nbsp;futures were up 0.3 per cent at $1,330.50.

&quot;Gold&nbsp;should continue to see interest support following Friday&#39;s jobs data as the chances of an interest rate rise in September pull back,&quot; MKS PAMP Group precious metals trader Sam Laughlin said in a note.

&quot;The support broadly sits around $1,315 - $1,320, while bulls will be looking for a break above $1,330,&quot; Laughlin said, adding that there was good buying interest from Japan on Monday.

Trading on Monday is expected to be quiet with the US&nbsp;out for the Labour Day holiday.

Spot&nbsp;gold&nbsp;may retrace to a support at $1,315 per ounce, as it failed to break a resistance at $1,330, according to Reuters technical analyst Wang Tao.

On Friday, Richmond Federal Reserve Bank President Jeffrey Lacker said the US&nbsp;economy appears strong enough to warrant significantly higher interest rates.

Wall Street&#39;s biggest banks are sticking to bets that the Fed will raise interest rates once this year, and the increase would most likely occur in December after a tepid employment report for August quashed most talk of a move as early as this month.

Hedge funds and money managers reduced their bullish stance in COMEX&nbsp;gold&nbsp;contracts in the week to Aug. 30 to the lowest in nearly three months, US&nbsp;Commodity Futures Trading Commission (CFTC) data showed on Friday.

&quot;Longs (positions) have been suffering from price correction and would be quite hard for them to sustain when prices are volatile. Speculators have to cut losses somehow,&quot; Wing Fung analyst To said.

The dollar&#39;s index against a basket of six major currencies was down 0.2 per cent at 95.664. A stronger greenback makes dollar-denominated&nbsp;gold&nbsp;more expensive for holders of other currencies.

Spot silver was mostly flat at $19.40 an ounce, hovering near a two-week high of $19.44 hit on Friday.
(Reuters) 
 
&nbsp;

US?employment growth slowed more than expected in August after two straight months of robust gains

Gold rose today as the dollar slid after a weaker-than-expected US jobs data trimmed expectations of a Federal Reserve rate hike in September. US employment growth slowed more than expected in August after two straight months of robust gains and wages were tepid. "The disappointment in the nonfarm payrolls data has been translated into optimism for goldprices at the moment. We can expect prices to further rebound to $1,350 in a short-term," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. Spot gold was up about 0.2 per cent at $1,326.83 per ounce by 0652 GMT. The metal rose as much as over 1 per cent on Friday. U.S. gold futures were up 0.3 per cent at $1,330.50. "Gold should continue to see interest support following Friday's jobs data as the chances of an interest rate rise in September pull back," MKS PAMP Group precious metals trader Sam Laughlin said in a note. "The support broadly sits around $1,315 - $1,320, while bulls will be looking for a break above $1,330," Laughlin said, adding that there was good buying interest from Japan on Monday. Trading on Monday is expected to be quiet with the US out for the Labour Day holiday. Spot gold may retrace to a support at $1,315 per ounce, as it failed to break a resistance at $1,330, according to Reuters technical analyst Wang Tao. On Friday, Richmond Federal Reserve Bank President Jeffrey Lacker said the US economy appears strong enough to warrant significantly higher interest rates. Wall Street's biggest banks are sticking to bets that the Fed will raise interest rates once this year, and the increase would most likely occur in December after a tepid employment report for August quashed most talk of a move as early as this month. Hedge funds and money managers reduced their bullish stance in COMEX gold contracts in the week to Aug. 30 to the lowest in nearly three months, US Commodity Futures Trading Commission (CFTC) data showed on Friday. "Longs (positions) have been suffering from price correction and would be quite hard for them to sustain when prices are volatile. Speculators have to cut losses somehow," Wing Fung analyst To said. The dollar's index against a basket of six major currencies was down 0.2 per cent at 95.664. A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies. Spot silver was mostly flat at $19.40 an ounce, hovering near a two-week high of $19.44 hit on Friday. (Reuters)

Gold up in wake of weak US jobs data

The Yen rose today as Bank of Japan chief, Haruhiko Kuroda left the markets guessing the central bank&#39;s policy plans 
 
Japan&#39;s top banker promised to release fresh measures if necessary while addressing a business seminar in Tokyo.&nbsp; 
 
He held off talks of scaling back on BOJ&#39;s easing measures and recognised the drawback of the bank&#39;s negative rate policy.&nbsp; 
 
It was designed to encourage lending but has hurt commercial banks&#39; profits. 
 
He&nbsp;however, gave some solid hints about the central bank&#39;s plans to oppose a slowing economy. 
 
Meanwhile, in Tokyo afternoon trade the Dollar fell to 103.44 Yen from 103.99 Yen in New York, while the Euro came down to 115.58 Yen from 116.02 Yen in US trade on Friday. 
 
The Bank of Japan&#39;s next policy meeting is September 20. 
 
Bloomberg News quoted Yousuke Hosokawa, head of foreign-exchange sales at Sumitomo Mitsui Trust Bank,&quot;While Kuroda denied any speculation about tapering, he spurred some disappointment for those looking for clear clues on policy action this month.&quot; 
 
&quot;With markets losing direction after the US jobs data fell short of adding fuel to US rate hike expectations this month, Kuroda&rsquo;s comments were neither supportive for aggressive selling nor for buying of the Dollar,&quot; he said. 
 
The US Labor department on Friday, released US jobs data figures, revealing the economy created 151,000 net jobs in August, lower than the expected 180,000. 
 
Analysts were confused on whether the number was enough for the US Federal Reserve to raise interest rates this month. 
 
The Euro ticked up to $1.1172 from $1.1156 AFP reported. 
 
The Dollar weakened against most other Asia-Pacific currencies, including the Indonesian Rupiah, Taiwan Dollar and South Korean Won. 
 
(WION with inputs from AFP) 
 
 
 
 
&nbsp;

While the Yen rose the Dollar weakened against other Asia-Pacific currencies

The Yen rose today as Bank of Japan chief, Haruhiko Kuroda left the markets guessing the central bank's policy plans Japan's top banker promised to release fresh measures if necessary while addressing a business seminar in Tokyo. He held off talks of scaling back on BOJ's easing measures and recognised the drawback of the bank's negative rate policy. It was designed to encourage lending but has hurt commercial banks' profits. He however, gave some solid hints about the central bank's plans to oppose a slowing economy. Meanwhile, in Tokyo afternoon trade the Dollar fell to 103.44 Yen from 103.99 Yen in New York, while the Euro came down to 115.58 Yen from 116.02 Yen in US trade on Friday. The Bank of Japan's next policy meeting is September 20. Bloomberg News quoted Yousuke Hosokawa, head of foreign-exchange sales at Sumitomo Mitsui Trust Bank,"While Kuroda denied any speculation about tapering, he spurred some disappointment for those looking for clear clues on policy action this month." "With markets losing direction after the US jobs data fell short of adding fuel to US rate hike expectations this month, Kuroda’s comments were neither supportive for aggressive selling nor for buying of the Dollar," he said. The US Labor department on Friday, released US jobs data figures, revealing the economy created 151,000 net jobs in August, lower than the expected 180,000. Analysts were confused on whether the number was enough for the US Federal Reserve to raise interest rates this month. The Euro ticked up to $1.1172 from $1.1156 AFP reported. The Dollar weakened against most other Asia-Pacific currencies, including the Indonesian Rupiah, Taiwan Dollar and South Korean Won. (WION with inputs from AFP)

Bank of Japan chief leaves market confused over policy plans