COMEX gold trades in a narrow range near $1270/oz amid stability in US dollar and equity market after recent losses. Rangebound to negative trade will continue in the near term amid lack of fresh cues
The US dollar rose against euro amid political concerns in Spain as pro-independence political party won elections in Catalonia region. Also supporting US dollar is tax reform deal and easing worries about government shutdown. US policymakers agreed on a short-term extension of federal funding to keep the government running for three more weeks.
However, weighing on US dollar is mixed economic data. US Q3 GDP growth estimate for revised down from 3.3% to 3.2%. Weekly jobless claims rose by 20,000 to 245,000 as against forecast of 233K. Chicago Fed Nat activity index fell to 0.15 as against forecast of 0.5. Leading indicators index rose 0.4% in line with expectations.
US equity market rose yesterday for the first time in three trading sessions on optimism about US economy. Asian equity markets are trading mixed early today as US optimism is countered by political concerns in Spain.