The prices of gold dropped to their lowest level in nearly five and a half year on Wednesday, after data demonstrated that the number of housing starts in the US issued dropped in October, while construction permits rose longer than expected, painting a mixed picture of the US housing sector. Besides the dollar gained and investors prepared for the first US interest rate hike in nearly a decade next month.
Gold for December delivery on the Comex fell to $1,062.00 a troy ounce.
Spot gold was down 0.20 per cent at $1,068.6 an ounce after falling to $1,064.95 earlier in the day, the lowest since February 2010. In India, spot gold prices hovered around Rs. 25,100 per 10 gram on Wednesday.
The United States Department of Commerce said housing starts to dropped 11% to 1.060 million units last month total of 1,191 million units in September. Analysts had been expecting a decrease of 3.9% to 1.160 million.
In the meantime, the number for construction licenses rose 4.1% to 1.150 million units total of 1.105 million in September, in line with market expectations.
Investors are now looking forward to minutes from the last meeting of the Federal Reserve ‘s policy due at 2:00 pm on Wednesday for more clues about the likelihood of a rate hike in December.
The price of gold collapses by Rs Tuesday. 450 to trade nearly four-month low of Rs. 25,700 per 10 grams in the Delhi bullion market, tracking subdued world trend amid the lawsuit filed by jewelers and retailers.
Bullion prices have dropped in 15 of the 16 sessions under the stress of expectations that the US Federal Reserve is set to raise interest rates next month.
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