Bengaluru: Gold prices tumbled to 9-1/2 month lows yesterday, heading for a for a third consecutive weekly decline as investors sold on factors including expectations of a US interest rate rise.
Spot gold was up 0.5 percent at $1,188.96 an ounce by 1057 GMT as funds took profits on short positions, from an earlier $1,171.21, its lowest since February 8. The precious metal has fallen about seven percent so far in November, leaving it on track for its largest monthly fall since June 2013.
US gold futures fell about 1 percent to $1,177.9 per ounce, after dipping to their lowest since Feb. 5 at $1,170.30.
“Investors are still retreating from gold though prices falling below $1,200 has promoted some profit-taking,” said Commerzbank analyst Eugen Weinberg.
“Gold is being driven by many factors including equity markets, currency markets and expectations of higher US interest rates, which are going to be a huge burden.”
Equity markets have rallied since Donald Trump won the US The US Federal Reserve is expected to raise rates at its December meeting. That would further boost the dollar, making commodities more expensive for holders of other currencies.
Markets are now pricing in a nearly 100 percent probability of a December Fed rate increase, according to CME FedWatch.
