Gold continues to face downward pressure

Manila

GOLD fell on Wednesday for a seventh session in eight, reflecting sustained downward pressure on the metal days after its steepest drop in almost two years, with more losses seen ahead as the demand outlook dims.

A looming hike in US interest rates has dented gold's appeal as an investment, encouraging more sellers in the market after Monday's 4 per cent rout. Holdings in top gold fund SPDR Gold Trust dropped further, marking their lowest since 2008. "The long-term downtrend is still in place and more people are selling," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. "We can't see any bullish factor. Inflation is well contained and we don't see a systemic crisis that might push people to buy gold."