Gold Prices Gain In Asia Despite Fed Hike, Inflation Picture Uncertain

Thursday,   14-Dec-2017   09:19 AM (IST)

Gold prices gained in Asia on a perceived dovish tilt to a Fed rate hik overnight and as economists grapple with inflation outlook with the US reaching nearly full employment by conventional measures.Gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose by 0.86% to $1,259.30 a troy ounce.China reported industrial production for November came in at a gain of 6.1%, compared with a 6.2% rise seen followed by retail sales which rose 10.2%, compared to a 10.3% rise expected and fixed asset investment came in up 7.2% as seen.The Federal Reserve approved its third rate hike of 2017, and forecasts further rate hikes despite growing concerns over the slow pace of inflation.Fed officials also expressed optimism in the economy, hiking their projection for economic growth in 2017 to 2.5%, while growth in 2018 was expected to rise to 2.5%, a 0.4% increase from the Fed’s September projections.The report raised investor expectations for ongoing bullish economic growth, lifting sentiment on risker assets like equities.Overnight, gold prices steadied as the dollar came under pressure following the release of timid inflation data which dampened investor expectations for a faster pace of rate hikes next year.