Gold approaching lowest in three months behind dollar’s strength
September 9, 2014 3:53 am
Prices for gold held near a three month low with the US dollar strengthening behind lowered demand arising from speculation over the Federal Reserve’s timing of interest rate hikes next year.
Spot gold traded at a price per ounce of $1,257.75 mid morning Singapore time today to be slightly ahead from yesterday’s close of $1,255.45, based on Bloomberg generic pricing. The precious metal’s value fell to its lowest since June 10th yesterday at $1,251.52. Futures for gold with a delivery date in December gained 0.4% to achieve a price per ounce in New York’s Comex of $1,258.70.
Outlook for increased borrowing costs has driven gold to fall this quarter by 5.2% due to weakening demand for an inflation hedge. Policymakers from the US central bank are scheduled to hold their next meeting on September 16th to 17th at which time interest rates will be likely to be one of their central concerns.
Meanwhile, the Bloomberg Dollar Spot Index that monitors the US dollar’s performance against 10 other currencies rose to its highest in over a year today.
Chief investment officer Jonathan Barratt from Sydney’s Ayers Alliance Securities says that, “Short-term traders seeking yields are looking for other alternatives. People who have gold are moving out of gold and they have been for some time. It’s a trade that nobody wants.”
Holdings in the SPDR Gold Trust, the largest bullion backed exchange traded product, decreased by 1.2% last week to bring the total down to 785.72.
Spot silver climbed 0.3% for a price per ounce of $9.0818 after dropping to its lowest since June 6th yesterday at $18.9204. Platinum for immediate delivery likewise declined by 0.1% to $1,399 per ounce while palladium was slightly down from yesterday’s $885.50 to $884.92.
The material has been provided by InstaForex Company – www.instaforex.com
Prices for gold held near a three month low with the US dollar strengthening behind lowered demand arising from speculation over the Federal Reserve’s timing of interest rate hikes next year.
Spot gold traded at a price per ounce of $1,257.75 mid morning Singapore time today to be slightly ahead from yesterday’s close of $1,255.45, based on Bloomberg generic pricing. The precious metal’s value fell to its lowest since June 10th yesterday at $1,251.52. Futures for gold with a delivery date in December gained 0.4% to achieve a price per ounce in New York’s Comex of $1,258.70.
Outlook for increased borrowing costs has driven gold to fall this quarter by 5.2% due to weakening demand for an inflation hedge. Policymakers from the US central bank are scheduled to hold their next meeting on September 16th to 17th at which time interest rates will be likely to be one of their central concerns.
Meanwhile, the Bloomberg Dollar Spot Index that monitors the US dollar’s performance against 10 other currencies rose to its highest in over a year today.
Chief investment officer Jonathan Barratt from Sydney’s Ayers Alliance Securities says that, “Short-term traders seeking yields are looking for other alternatives. People who have gold are moving out of gold and they have been for some time. It’s a trade that nobody wants.”
Holdings in the SPDR Gold Trust, the largest bullion backed exchange traded product, decreased by 1.2% last week to bring the total down to 785.72.
Spot silver climbed 0.3% for a price per ounce of $9.0818 after dropping to its lowest since June 6th yesterday at $18.9204. Platinum for immediate delivery likewise declined by 0.1% to $1,399 per ounce while palladium was slightly down from yesterday’s $885.50 to $884.92.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: