Author: Paul Ploumis15 Jun 2015 Last updated at 02:04:21 GMT
EDGWARE (Scrap Monster): Spot gold prices shed early gains to trade flat on Monday. The precious metal traded in a tight range as markets were seen waiting for the US Federal Reserve meet scheduled to take place later during this week, which is anticipated to provide clues with regard to the chances of a possible interest rate hike. Meantime, Greece failed to strike a deal with its creditors, thereby keeping debt fears high.
The spot gold prices, that climbed as higher as $1,186.20, shed most of their gains, trading at $1,180.30 per Oz by 0315 GMT. Meantime, dollar gained strength, rising 0.3% against world currencies. According to analysts at Morgan Stanley, the strength in US dollar has put gold under tremendous pressure. They expect the trend to continue during rest of the year, as the market participants expect US Fed to announce rate hike sometime during the year. However, any hint on the timing of rate hike may lend short tern support to gold prices.
The US Fed meeting is scheduled to begin Tuesday. A statement is expected to be released Wednesday. A rate hike could dampen the demand for gold and further strengthen the US dollar. The decent economic data that the country has reported during recent months indicate to the possibility of rate hike before the year end.
Meantime, holdings in SPDR Gold Trust-the world’s largest gold-backed ETF saw huge outflows on Friday, plunging to their lowest levels since 2008.
Also, spot silver traded at $15.93 per Oz on Monday at 0314 GMT, dropping 0.06%. Spot platinum too dropped by 0.33% to $1090.99. Also, Spot palladium prices stood at $733 per Oz, dropping 0.5% as at 0314 GMT Monday.