Gold was steady early on Thursday, holding just above eight-week lows hit earlier this week, as the U.S. dollar and stocks firmed amid expectations of imminent interest rate rises.
Spot gold was unchanged at $1,218.81 per ounce by 0102 GMT. It hit an eight-week low of $1,213.81 an ounce on Tuesday, its lowest since March 15. U.S. gold futures were also steady at $1,219.10 an ounce. Asian stocks rose early on Thursday, getting a lift from a record high close on MSCI’s global stocks benchmark after strong gains in oil prices buoyed energy stocks globally.
The dollar edged up to eight-week highs against the yen on Thursday in early Asian trading, as investors’ focus turned back to the strength of the economy and away from U.S. politics. The Federal Reserve should hike interest rates three more times this year and at the same time start shedding its bond holdings, a Fed policymaker said on Wednesday, mapping out a somewhat hawkish option for the U.S. central bank.
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Meanwhile, the Bank of England is expected to leave rates unchanged at a record low 0.25 percent at its policy meeting on Thursday. Faced with Brexit unknowns, a national election and mixed economic data, Bank of England Governor Mark Carney and his colleagues will probably say on Thursday they want more clarity before paving the way for the first interest rate hike in nearly a decade. It is too early for the European Central Bank to declare victory in its quest to boost euro zone inflation despite signs the bloc’s economic recovery is strengthening, ECB President Mario Draghi said on Wednesday.
Polyus Gold , Russia’s largest gold producer, reported $203 million in adjusted first-quarter net profit on Wednesday, little changed from a year earlier due to higher debt servicing charges. Tanzania’s president John Magufuli said his government will enforce a new rule requiring mining firms to list on its bourse by August as part of measures aimed at increasing transparency and spreading wealth from the country’s natural resources.
The London Metal Exchange (LME) will submit a proposal to take over the London silver fix, a senior executive said on Wednesday, the first company to publicly express interest in replacing the current operators of the price benchmark. DATA/EVENT AHEAD (GMT) 0600 Germany Wholesale price index April 0830 Britain Industrial output March 1100 Bank of England interest rate decision 1230 U.S. Weekly jobless claims