Gold Prices Slide to 1-Month Low As US Rate Hike View Weighs

Gold Prices Slide to 1-Month Low As US Rate Hike View Weighs

Prices of gold futures were on track to post their 4th straight losing session on Tuesday as investors dumped the precious metal on expectations the US Federal Reserve rate hike this year.

Gold for December delivery on the Comex tumbled $11.30, or 0.99%, to trade at $1,124.60 a troy ounce.

Spot gold ticked up 0.3 per cent to $1,137.05 an ounce at 12:17 PM, but not too far from a four-week low of $1,132.35 reached in the previous session.

Gold had risen in October as concerns about the global downward outlook led by China and its impact on growth prospects in the United States had encouraged market participants to drive back the expectations of a rate increase in March 2016.

But the hardline statement last week the Fed forced market players to readjust expectations of higher interest rates as early as December, prompting a sell-off in the bullion market.

As an asset without interest paid, the demand for gold could take a hit of the highest rates, while a stronger dollar makes dollar-denominated gold more expensive for holders of other currencies.

US economic data Monday supported a rate hike this year. Factory activity in October hit a 2-1 / 2 years, but an increase in new orders offered hope US could have seen its worst.

Other data showed that overall construction spending rose in September to the highest in 7-1 / 2 years, indicating that the economy was on firmer ground despite signs of cooling consumer spending.

Investor outputs traded funds have increased.

Holdings in SPDR Gold Trust, the exchange-traded fund backed by gold higher, fell 0.43 percent to 689.28 tonnes on Monday, the lowest in three weeks. The fund has not seen any input from 19 October.

Market participants are looking ahead to a non-farm payrolls on Friday for clarity on the likelihood of an interest rate hike in the short term.

Gold prices move in range of 26300-26600 at Multi Commodity Exchange.

For Commodity Market Tips, MCX Live Tips, Gold-Silver Prices and trading market latest news & updates  with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook.  And to contact the reporter on this story email at support@100mcxtips.com or Call: +91-761-4012307

Mcx Commodity Tips

Advertisements

100McxTips is an experienced Mcx Commodity Research Advisory to predict investors buying and trading trends at various market environments. For free trial advisory on commodity Gold, Silver, Crude, Copper and all Indian Commodities kindly visit us and submit an query form at 100mcxtips free trial tips here.

Posted in Commodity, MCX, Stocks Market

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Free Crude Oil Tips
Free Trial Crude Trading Tips
Contact & Visit Info
+91-761-4012307
M-Sat : 10am - 7pm
NG Trading Tips
Free Trial Commodity Tips
Disclaimer: 100McxTIps would like to remind you that the data contained in this website is not necessarily real-time nor accurate. Bulloin Futures prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore 100McxTips doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
%d bloggers like this: