Gold started the week trading near its four year low as the U.S. dollar posted gains and investors continue to speculate on the timing Federal Reserve’s planned interest rate increases.
According to a report from Bloomberg, gold for December delivery fell 0.1 percent to $1,170.60 an ounce by 7:55 a.m. on the Comex in New York. Prices dropped up to 0.9 percent to $1,161 earlier today, before rebounding. Bullion for immediate delivery slipped 0.2 percent to $1,170.99 in London, according to the Bloomberg generic pricing measure.
A report from Binary Tribune pointed out gold’s slip today to its four-year low levels coincided with the U.S. dollar reaching its four-year high. The greenback gained strength on the news that the Fed would end its stimulus program and raise interest rates at some heretofore unannounced date. There has been some speculation, fueled in part by the Fed, that if employment rates and prices stabilize, the move on interest rates could come sooner rather than later, keeping the dollar strong.
“The prospect of firmer rates, coupled with our expectation for a stronger dollar, present significant headwinds for gold and are likely to skew risks to the downside,” Barclays Plc analysts including New York-based Suki Cooper said in a report featured in Bloomberg today.
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