You are here
Gold holds decline as investors brace for higher interest rates
[SINGAPORE] The metal for immediate delivery was 0.1 per cent lower at US$1,265.85 an ounce at 8:01am in Singapore after a 0.5 per cent decline on Wednesday, according to Bloomberg generic pricing. Bullion has lost 3.8 per cent this month.
Gold has retreated after rallying 25 per cent in the first half of 2016 as the market continued to raise bets that the Federal Reserve will raise borrowing costs by the end of this year. Fed funds futures show the odds of a hike in December climbed to 72.5 per cent from 59 per cent at the beginning of October.
Data on US durable goods orders for September is due later Thursday and the government's first estimate for third-quarter gross domestic product is scheduled for release on Friday.
"Markets are now largely assuming that the Fed will lift rates in December," Ric Spooner, a chief market analyst at CMC Markets in Sydney, said in an e-mail.
"The focus of attention for gold is now on what happens to rates next year. Markets will be focusing on economic data for clues."