Morning Briefing: Gold down 2 per cent following Fed

Morning Briefing: Gold down 2 per cent following Fed

Morning Briefing: Gold down 2 per cent following Fed Gold down 2 per cent following Fed
Gold prices have fallen overnight following Wednesday’s interest rate hike by the Fed. The US dollar has gained, impacting global currencies including the loonie.

Oil prices have lifted with investors expecting the market to be tighter as January’s rate caps approach.

Asian equities were broadly lower Thursday as markets reacted to the Fed rate rise and digested mixed regional data. Japan’s manufacturers gained though as the weaker yen gave good news for exports.

In Europe, most markets are trending higher with some better-than-expected data and the clarity of US rate rises ahead. London’s FTSE is lower ahead of the Bank of England’s interest rate decision although no change is expected.

Wall Street and Toronto are expected to open higher.
 
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North America (previous session)
US Dow Jones 19,792.53 (-0.60 per cent) Unavailable Unavailable
TSX Composite 15,197.18 (-1.22 per cent) Unavailable Unavailable
 
Europe (at 5.00am ET)
UK FTSE 6,936.44 (-0.18 per cent) Unavailable Unavailable
German DAX 11,303.04 (+0.52 per cent) Unavailable Unavailable
 
Asia (at close)
China CSI 300 3,340.43 (-1.14 per cent) Unavailable Unavailable
Japan Nikkei 19,273.79 (+0.10 per cent) Unavailable Unavailable
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
54.38
(+0.89 per cent)
51.29
(+0.49 per cent)
1138.20
(-2.19 per cent)
U$0.7517
 
Aus. Dollar
U$0.7393

 
Gold at new 10-month low
Canada’s gold producers saw prices drop Wednesday following the Fed’s interest rate decision and the outlook for 2017 is for subdued prices.

The greenback’s rise has seen gold prices drop more than 2 per cent Thursday and ANZ analyst Daniel Hynes told Reuters that he expects more pain for the precious metal sector.

"The selling seen this morning is just the start of things to come. Certainly the environment is difficult for gold given the appreciation in the dollar," he said.