Gold holds decline as stronger US dollar weighs on investor demand
[SINGAPORE] Gold held losses after a five-day drop as investors contemplate the possibility of higher US interest rates, buoying the US dollar.
The metal for immediate delivery fell as much as 0.4 per cent to US$1,314.24 an ounce, the lowest since Sept 2, and traded at US$1,317.68 at 9.21am in Singapore, according to Bloomberg generic pricing.
The metal lost 2.3 per cent in the five days to Tuesday, while a gauge of the greenback rose 1.5 per cent.
After rallying 25 per cent in the first half, gold's advance has stumbled as investors weigh prospects for higher US rates this year, which would damp the appeal of bullion as it doesn't offer yields.
Odds of a hike in December are now more than 50 per cent compared with about 36 per cent at the beginning of August, futures prices indicate.
Holdings in exchange-traded funds backed by the metal dropped for a fourth time in five days.
"Gold struggled as investors continue to ponder the likelihood of an interest rate hike in the US in the near future," Australia & New Zealand Banking Group Ltd said in a note.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns
India's Vedanta misses Q4 profit estimates on lower prices
BHP targets Anglo American in bid valuing miner at US$39 billion
China's Sinopec charts global expansion with refinery in rival India's backyard