Gold price little changed, awaits Fed speeches for direction

Gold was little changed on Monday, October 24 around 11:00 London time while investors await FOMC member speeches tonight for indications on the timing of the next rise in US interest rates.

The spot gold price was recently quoted at $1,266.50/1,266.80 per ounce, up 25 cents on the previous close. Trade has ranged narrowly from $1,262.70 to $1,267.05 so far.      

In currencies, the dollar index continues to climb – it peaked at 98.85 this morning, its highest since February – which reflects expectations that the Federal Reserve will lift interest rates in December.

FOMC members William Dudley and James Bullard are giving speeches tonight. In data, the US flash manufacturing PMI is due for release.

The continued withdrawal of speculative financial investors from gold may be partly to blame for the failure of gold and silver prices to make much of a recovery, Commerzbank noted.

According to CFTC statistics, the net long positions in gold and silver fell for the third consecutive week in the week to October 18 by 12% and 10% respectively, bringing the net long positions to seven-and-a-half-month and eight-month lows.

In the other precious metals, the spot silver price gained 12 cents to $17.625/17.655 per oz. Platinum at $937/942 was $12.50 higher and palladium at $626/634 was up $9.

(Editing by Mark Shaw)

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