Gold prices dip in Asia as Fed rate hike prospects next year weigh

Investing.com - Investing.com - Gold prices fell further in Asia on Thursday as prospects for a Federal Reserve hike in interest rates next year weighed on investors.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,218.00 a troy ounce, down 0.49%, after hitting an overnight session low of $1,228.40 and off a high of $1,239.90.

Overnight, gold prices fell as markets digested the Federal Reserve's September statement on monetary policy, with investors questioning the dovish degree of the language.

The Federal Reserve said earlier it was leaving its benchmark interest rate unchanged at 0.00-0.25% and added it would likely close its monthly bond-buying program in October.

 Prior to Wednesday's policy statement, the Fed was buying $25 billion in Treasury debt and mortgage-backed securities a month to stimulate the economy, a monetary policy tool known as quantitative easing that aims to suppress long-term interest rates.

 The Fed decided earlier to trim that figure to $15 billion and will likely close it at its Oct. 28-29 meeting.

Monetary stimulus tools tend to boost gold prices, as the yellow metal serves as a hedge to lower interest rates and a weaker dollar.

 Still, the Fed added it won't rush to raise interest rates due to headwinds still facing the labor market, dovish language that would otherwise support the precious metal.

 Gold fell anyway, as investors bet that interest rates still remain on track to rise in 2015.

Silver for December delivery was down 0.23% at $18.493 a troy ounce. Copper futures for December delivery were flat at $3.135 a pound. More Information Please visit Site www.bigprofitbuzz.com