Investing.com - Gold prices seesawed between small gains and dips in Asia on Friday as investors sought bargains after a sharp overnight drop on views over the timing of a widely expected Federal Reserve rate hike.
On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.04% to $1,147.80 a troy ounce.
Silver for December delivery gained 0.42% to $15.615 a troy ounce.
Copper for December gained 0.27% 2.325 a pound.
Overnight, gold futures plunged more than 2% on Thursday, erasing all of their gains from the previous three weeks, as investors reacted to strong hints from the Federal Reserve that it could raise short-term interest rates when it meets next in December.
Metal traders continued to digest hawkish comments from the Federal Open Market Committee on Wednesday, when the U.S. central bank provided compelling indications that it could lift interest rates at its next meeting in December. The FOMC reframed its policy discussion on Wednesday, by including a line in its monetary policy statement that explicitly put a December lift-off back on the agenda. The line was conspicuously absent from its statement released after its previous meeting in September.
Citing weakness in the labor market and moderate economic growth, the FOMC voted to leave its benchmark Federal Funds Rate at a target range between zero and 0.25%. The rate has remained at a zero-bound range for more than five years after the Federal Reserve introduced a wide range of monetary easing measures aimed at rescuing the economy from near collapse.
The FOMC also downplayed the impact of the global economic slowdown on its policy decision in a dramatic reversal from its position last month. In September, the Fed opted to leave rates unchanged, after blaming headwinds from a slowing global economy for placing downward pressure on inflation. On Wednesday, the FOMC indicated that it will continue to monitor inflation developments closely as it weighs its decision.
Separately, the U.S. Department of Commerce said Thursday morning in advance estimates that Gross Domestic Product for the third quarter rose by 1.5%, slightly below consensus estimates of a 1.7% increase. By comparison, U.S. GDP in the second quarter increased by a 3.9% clip in its latest reading. An otherwise robust report was restrained by an inventory drag of minus-1.4%, which offset gains in domestic demand, consumer spending and equipment investment. Housing investment surged by 6.1% during the quarter, while final sales jumped by 3% overall.