Gold prices ease in Asia as investors watch Middle East, Fed

Category: Commodities

Gold prices ticked lower in Asia on Thursday as investors watched both Middle East tension and for further signal on a widely expected Federal Reserve rate hike next month.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell 0.05% to $1,070.20 a troy ounce.Silver futures for December delivery was flat at $14.165 a troy ounce, while copper changed hands at $2.051 a pound, down 0.03%.Overnight, gold futures inched down on Wednesday amid a stronger dollar, as mixed U.S. inflation data for October largely lacked the firepower to sway policymakers at the Federal Reserve as it weighs whether to raise short-term interest rates at a critical meeting next month.On Wednesday morning, the U.S. Commerce Department's Bureau of Economic Analysis said U.S. personal income last month rose by 0.4%, in line with consensus estimates. It followed an upwardly revised increase of 0.2% in September. Consumers spending, meanwhile, ticked up by 0.1% in October, following a 0.1% increase a month earlier.The PCE Price Index also inched up 0.1% on the month falling within the consensus range between -0.1% and 0.2%. The Core PCE Index, which strips out food and energy prices, remained unchanged, after gaining 0.1% in September. On a yearly basis, the core reading stood at 1.3%, also unchanged from a month earlier. The Core PCE Index is the Fed's preferred gauge of inflation as it weighs whether to raise short-term interest rates for the first time in nearly a decade.Over the last several weeks, a number of key policymakers from the Federal Open Market Committee have sent strong indications that it is ready to tighten policy as the economy and labor market continues to show improvement. Earlier this month, Fed vice chairman Stanley Fischer said he believes that long-term inflation will move back toward its targeted goal of 2% as temporary factors from a stronger dollar and weaker energy prices continue to recede.Elsewhere, the factory sector is showing signs of renewed strength after durable goods orders surged by 3% in October, significantly above consensus estimates of gains of 1.5%. Orders in the airline sector soared 200% in connection with a prominent air show in Dubai. Consumer sentiment, meanwhile, fell back to 91.3 from a mid-month reading of 93.1, ahead of the start of the holiday shopping season on Friday.