PRECIOUS-Gold down on dollar, eyes biggest monthly fall in 2-1/2 years – by Clara Denina (Reuters U.S. – November 30, 2015)

LONDON, Nov 30 Gold edged lower on Monday, heading towards its lowest level in nearly six years as the dollar hit a multi-month high and on track for its steepest monthly slide in 2-1/2 years on prospects of a U.S. interest rate hike this year.

Spot gold slipped 0.1 percent to $1,056.01 an ounce by 1053 GMT, not far off from of Friday’s $1,052.46, the lowest since February 2010. A stronger dollar, up to a fresh eight-month high against a basket of major currencies, weighed on gold and made it more expensive for foreign holders.

Bullion has lost 7.5 percent of its value in November, its biggest monthly dip since June 2013, as investors remained focused on a possibly imminent rate hike in the United States.

Gold, a non-interest-paying asset, could take a hit from higher rates as the dollar gains and the opportunity cost of holding it increases.

The U.S. Federal Reserve holds its next policy meeting on Dec. 15-16.

A U.S. payrolls report on Friday will be even more closely watched than usual. A strong number after a surge in job growth in October could cement expectations that the Fed will deliver its first hike in almost a decade.

For the rest of this article, click here:

Comments are closed.