Gold Drops for Fifth Month Amid a Rally in Dollar, Stocks – by Ranjeetha Pakiam and Rupert Rowling (Bloomberg News – August 31, 2018)

https://www.bloomberg.com/

Gold is set for a fifth straight monthly decline, the longest losing run in half a decade, hit by a strengthening dollar and U.S. equities at record highs.

Bullion for immediate delivery, which was at $1,205.96 an ounce on Friday, has lost 1.5 percent in August, and the run of monthly declines is the longest since 2013. Prices hit a 19-month low on Aug. 16 and are down 7.4 percent this year, while the Bloomberg Dollar Spot Index has risen 1.7 percent.

The precious metal has been dumped as investors weigh prospects for further tightening by the Fed amid a robust U.S. economy, with global holdings in gold-backed exchange-traded funds declining to the lowest level since November.

The latest developments on the trade war front have further aided the dollar, with President Donald Trump expected to move ahead with tariffs on an additional $200 billion in Chinese imports as soon as next week.

For the rest of this article: https://www.bloomberg.com/news/articles/2018-08-31/gold-posts-worst-losing-run-in-half-decade-as-dollar-trumps-all

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