Forex Top Story
11/4/2009 4:06 PM ET
(RTTNews) -
Gold prices edged higher to extend a record closing high on Wednesday and then added to the gains after the Federal Reserve announced rates will remain low.
Gold finished at a record closing level $1,087.30, up $2.80 on the session. The metal hit as high as $1,098.50 in electronic trading following the rate announcement was made public after the close of Comex floor trading.
The Federal Open Market Committee said it was leaving its target for the federal funds rate at a range from zero and a quarter percent. The central bank also repeated its assessment that "exceptionally" low rates will continue for an "extended period." The vote for the rate decision was unanimous.
The dollar fell to an eight-day low against the euro, giving back some of its recent recovery. The buck dropped near 1.4900 after the rate decision. The greenback also weakened versus the sterling.
This morning, the monthly Automatic Data Processing report showed that non-farm private employment fell by 203,000 jobs in October following a revised decrease of 227,000 jobs in September. Economists had expected a loss of 198,000 jobs compared to the decrease of 254,000 jobs originally reported for the previous month.
The Institute for Supply Management said its index of activity in the service sector edged down to 50.6 in October from 50.9 in September, with a reading above 50 indicating growth in the sector. The decrease by the index came as a surprise to economists, who had expected the index to rise to 51.5.
On Thursday, the preliminary third quarter productivity report is expected at 8:30 a.m. ET. A rise of 6.5% is expected, after an increase of 6.6% in the prior quarter.
Initial jobless claims data is also coming at 8:30. First-time unemployment applicants are expected to fall to 520,000, compared to 530,000 a week earlier.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
|