Gold futures dropped 2 percent on Thursday to trade under $800 an ounce after the dollar gained against most other major currencies, lowering investors’ interest in the precious metal.
The European Central Bank's policymakers will act in a firm and timely manner to ensure that knock-on effects from higher oil prices do not appear, the ECB said in the editorial of its December bulletin.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent.
The U.S. Federal Reserve is widely expected to cut interest rates on Tuesday by at least a quarter-percentage point to fortify the economy against a credit crunch and housing slump that some economists fear could bring a recession. Economic signs show the economy has not gone into a precipitous slide. Deteriorating financial markets, however, led the Fed to say it saw risks rising.
The euro rose against the dollar and yen on Monday, as investors await that the Federal Reserve will lower interest rates Tuesday to boost the economy.
World stock markets are in for their most modest annual gains for years in 2008 thanks to the global credit crunch and an evolving economic slowdown, Reuters polls showed on Monday.
Global stocks erased early losses on Monday, dollar money market tensions eased and the U.S. currency held near one-month highs against the yen ahead of an expected Federal Reserve interest rate cut this week.
Another U.S. Federal Reserve interest rate cut this week is a foregone conclusion as far as financial markets are concerned, but a heaping helping of global inflation data may leave a sour aftertaste. foregone conclusion as far as financial markets are concerned, but a heaping helping of global inflation data may leave a sour aftertaste. The Fed is widely expected to follow the central banks of Canada and England with a quarter-percentage-point reduction in the benchmark federal funds rate on Tuesday.
China's bid to end fuel shortages only a temporary cap on the problem
Employers added 94,000 jobs in November, the Labor Department said on Friday in a report showing a slowdown in job creation in recent months that raises chances for a modest cut in interest rates next week. Analysts said continued gains in hiring showed the economy was not at immediate risk of crumbling onto recession but another report said consumers' moods grew darker in December.
The euro rose against the yen and dollar on Thursday after the head of the European Central Bank, Jean Claude Trichet, reduced speculation of a rate cut, warning about inflationary pressure.
The euro rose against the dollar and the yen on Thursday after the European Central Bank left interest rates on hold but President Jean-Claude Trichet warned of strong upward pressure on inflation.
The board of the Reserve Bank of Australia decided to keep the interest rate at the same percentage of 6.75, but it has concerns regarding inflation.
Wall Street's rebound from its first full-fledged correction in more than four years could continue this week if investors believe a plan to keep millions of Americans from losing their homes can work.
Consumer spending inched up by an unexpectedly small 0.2 percent last month and construction spending tumbled, according to reports on Friday that heightened concerns on the health of the economy.
Gold firmed in narrow ranges on Friday, struggling to recapture the key $800 mark and taking refuge from sharp swings in oil and currency markets.
The yen fell broadly on Friday and high-yielders gained after comments by Federal Reserve Chairman Ben Bernanke cemented expectations of easier monetary policy, which may help the U.S. economy to avoid a recession.
Federal Reserve Chairman Ben Bernanke said on Thursday a resurgence in financial strains in recent weeks had dimmed the outlook for the U.S. economy, signaling an openness to lowering interest rates again. He said the Fed will have to remain exceptionally alert and flexible.
Global stocks rallied on Thursday after strong Wall Street gains in the previous session, as the prospect of Federal Reserve interest rate cuts boosted faith in the U.S. economy and encouraged investors to take on risk again.
Economic growth slowed in October and the first half of November as a glut of homes for sale pushed home prices down and tighter credit took some would-be buyers out of the market, the Federal Reserve said on Wednesday.
Gold slid under the $800 mark in increasingly volatile conditions on Wednesday, as softer oil prices and a firmer dollar against the euro dented the metal's wider appeal for investors.
Former Federal Reserve Chairman Alan Greenspan said on Friday that chances of a U.S. recession would be more than 50 percent if it were not for the remarkable flexibility of the economy.
