Gold slips

BENGALURU- Gold prices edged lower yesterday, pressured by stronger equities and a firmer dollar amid speculation over who will be the next US Federal Reserve chief.

Spot gold was down 0,2 percent at $1 273,70 an ounce by 0633 GMT and US gold futures for December delivery were 0,2 percent lower at $1 275,20 per ounce.

“Gold fell overnight, and continues to point south this morning as market appetite improves on better Wall Street prints amid stronger-than-expected corporate earnings results,” said OCBC analyst Barnabas Gan.

Asian shares inched higher yesterday, while US Treasury yields and the dollar got a lift following a report that Republican senators were leaning towards John Taylor to be the next Federal Reserve chief.

“Moreover, the strengthening dollar on news of rising probability for John Taylor to be the next Fed chair is a key driver for softening gold prices into the week ahead,” Gan said.

US President Donald Trump used a lunch with Senate Republicans on Tuesday to get their views on who he should tap to be the next leader of the Fed, according to senators who attended.

A source familiar with the matter said Trump polled the Republicans on whether they would prefer Stanford University economist Taylor or current Fed Governor Jerome Powell for the job, and more senators preferred Taylor. Taylor is seen as a hawkish candidate who would prefer higher interest rates in the United States. — Reuters.