Gold edges up; market awaits Fed decision

SINGAPORE (BestGrowthStock) – Gold prices firmed a touch on Thursday, reversing losses in the previous session, as investors closely watch the Federal Reserve’s decision on monetary easing next week, with a slightly weaker dollar lending support.

FUNDAMENTALS

* Spot gold gained 0.2 percent to $1,326.67 an ounce by 0027 GMT, regaining some of the lost ground on Wednesday as investors reworked their assessments on the scale of the Federal Reserve’s stimulus plan.

* U.S. December gold futures rose 0.3 percent to $1,327 an ounce.

* Most leading economists expect the Federal Reserve to buy between $80 billion and $100 billion worth of assets per month under a new program to bolster the struggling economy, a Reuters poll found on Wednesday.

* The latest data from the United States confirmed expectations on the Fed’s further monetary easing. Durable goods orders dropped unexpectedly last month, along with business spending, while new home sales continued to bounce along the bottom.

* JPMorgan Chase & Co (JPM.N: ) and HSBC Holdings Plc (HSBA.L: ) were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices, and reaping an estimated hundreds of millions of dollars of illegal profits.

* Spot silver rose nearly half a percent to $23.64 an ounce.

* Palladium rose nearly one percent to $618.25, after touching a nine-year peak at $636.25 in the previous session.

MARKET NEWS

* U.S. stocks (Read more about the stock market today. ) fell on Wednesday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy. (.N: )

* A short-covering bounce in the U.S. dollar paused in Asia on Thursday, though the currency was underpinned by U.S. Treasury yields which hit a five-week high overnight.

(Reporting by Rujun Shen)

Gold edges up; market awaits Fed decision