Bloomberg –  Gold Little Changed Near 7-Month Low on Rates Outlook

Gold traded little changed near a seven-month low on speculation that the Federal Reserve is moving closer to raising interest rates, eroding demand for the metal as an alternative to stocks and bonds. Silver rebounded from a 14-month low.

Data today may show U.S. retail sales improved. The Bloomberg Dollar Spot Index rose to a 14-month high as traders increased bets that the Fed will raise borrowing costs by July 2015 after holding them near zero since 2008. Gold slumped 28 percent last year on expectations the central bank would reduce monthly asset purchases, which it has done six times.  Read Full Article

gold_tumbleEconomic Times – Gold stuck near 7-1/2 month low; set for worst week since May

SINGAPORE: Gold fell to fresh 7-1/2 month lows on Friday, poised to post its worst week in more than three months as a stronger dollar and easing tensions in Ukraine curbed appetite for safe-haven bullion.

The dollar index was holding near a 14-month high on Friday and was firmly on track to post its ninth consecutive week of gains, boosted by strong economic data and expectations the U.S. Federal Reserve would soon raise interest rates . Read More

MoneyControl.com – Will gold fall to $1200/oz? A matter of time, says IIFL

With festive season just around the corner, for most of us investing in gold is like a ritual, which has to be followed at any cost. But a wait to dig into the precious metal could prove to be more rewarding as global and local factors cast shadow on gold’s prospects to shine bright this year. Research firm IIFL foresees global gold price falling to USD 1,200/oz in a matter of time. It doesn’t find any persuasive factor to allocate funds to the yellow metal now.

Rate hike by US Fed – There are widespread expectations that strong US economic data could trigger a rate hike by the US Federal Reserve sooner than expected. Once rates are hiked, gold, a non-interest yielding asset may not remain an attractive option for investors. Read More

 

BullionVault – Gold Bullion at 8-Month Low on “Weak” Demand as China “Gains Pricing Power” with New Contracts & Trading Exchange

GOLD BULLION prices rallied $7 per ounce Thursday lunchtime in London after hitting an 8-month low beneath $1240. Earlier touching 3-week and 1-month lows respectively, the bounce for gold bullion priced in Euros or Sterling was more muted, as the Dollar weakened following a surprise jump in weekly US jobless claims data.

Silver meantime touched its lowest Dollar level since end-June 2013 at $18.66 per ounce, barely 40¢ above its lowest price in more than 5 years. Major government bond yields eased back as prices rose, but Europe’s key Brent crude oil contract again held below $100 per barrel – a record high when first reached in early 2008 – after new data from China showed a marked slowdown in consumer-price inflation Read More

Wall Street Journal – Gold price hits seven-month low

Gold prices have fallen to their lowest level in more than seven months and finished in the red for the fourth session in a row, as a strong US dollar and muted geopolitical fears continued to weigh on its appeal as a safe-haven investment.

Copper prices also fell after Chinese inflation data came in weaker than expected, prompting concerns about demand in the world’s largest consumer of the metal.

Gold for December delivery, the most actively traded contract, ended the day down $US6.30, or 0.5 per cent, at $US1,239 an ounce on the Comex division of the New York Mercantile Exchange. Read More

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