Gold turns lower on expectations of fed rate hike

Gold turns lower on expectations of fed rate hike


December futures for gold on the new York stock exchange Comex became cheaper by 5.6 per dollar. Earlier, gold prices dropped to $ 1073 an ounce, dropping below the low from February 11, 2010.

MOSCOW, 12 Nov. Gold prices on Thursday demonstrated a negative trend, as investors continued to expect a rate increase in the US in December: the gold price struck a low since February 2010, according to AFP.

As at 18.51 GMT December futures for gold on the new York stock exchange Comex became cheaper by 5.6 million, or 0.53%, to 1079,3 dollars per Troy ounce. Earlier, gold prices dropped to $ 1073 an ounce, dropping below the low from February 11, 2010 in 1075,85 USD per ounce. The cost of December futures for silver declined 0.16% to 14,24 USD per ounce.

Bidders continue to react to the possibility of increasing the base rate in the U.S. in December. Positive statistics on the U.S. labour market in October has increased expectations of a fed rate in December and strengthened the position of the dollar against most world currencies. The strengthening of the us currency puts pressure on the value of the metal, making it more expensive for holders of foreign currencies.

“We expect that prices will fall a little bit stronger because of the expected rate increase by the fed in December. Prices could fall to $ 1,050 per ounce by the end of the year,” said Reuters commodities analyst at Capital Economics in London Gambarini Simona (Simona Gambarini).