1. Gold eyes worst week in two months on US rate hike view

Gold eyes worst week in two months on US rate hike view

Bullion is down 1.4 per cent for the week, the sharpest decline since the week ended August 28.

By: | Singapore | Published: October 30, 2015 8:37 AM
Gold demand

Gold held near its lowest in three weeks on Friday and looked set to post its worst week in two months on expectations that the Federal Reserve would raise US rates this year. (Express Photo)

Gold held near its lowest in three weeks on Friday and looked set to post its worst week in two months on expectations that the Federal Reserve would raise US rates this year.

FUNDAMENTAL

Spot gold was steady at $1,146.26 an ounce by 0032 GMT, not far from a three-week low of $1,144.20 in the previous session.

Bullion is down 1.4 percent for the week, the sharpest decline since the week ended Aug. 28.

The metal has been under pressure after the Fed on Wednesday surprised with a direct reference to its next policy meeting as a possibility for the first U.S. rate hike in nearly a decade.

The Fed said raising rates at its next meeting would depend on progress made on employment and inflation, and omitted any reference to global developments affecting US economic activity.

Gold had rallied earlier this month on speculation that the softness in the global economy could prompt the U.S. central bank to delay the rate hike to next year. The hawkish tone on Wednesday triggered a sell-off in the metal.

The strength in the dollar also hurt gold. The greenback climbed to a 2-1/2-month high on Wednesday after the Fed, though it has since given back some of those gains.

Investors will be watching the Bank of Japan’s monetary policy decision due later in the day for trading cues. The BOJ is expected to hold monetary policy steady even while diluting its rosy inflation forecasts, sources say.

Tags: Gold Prices
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