1. Gold stuck near 3-month low as US rate hike looms

Gold stuck near 3-month low as US rate hike looms

Gold was near a three-month low on Tuesday on expectations the US Federal Reserve is well on track to raise interest rates before the year is over.

By: | Published: November 10, 2015 8:14 AM
gold price

Gold was near a three-month low on Tuesday on expectations the US Federal Reserve is well on track to raise interest rates before the year is over. (Express Photo)

Gold was near a three-month low on Tuesday on expectations the US Federal Reserve is well on track to raise interest rates before the year is over.

FUNDAMENTALS
Spot gold was little changed at $1,091.40 an ounce by 0037 GMT, not far above Friday’s low of $1,084.90 when strong US employment data for October fuelled speculation the Fed will increase interest rates at its policy meeting next month.

The metal ended an eight-day losing run on Monday, but not enough to pull it far away from last week’s lows.

Following bullion’s recent steep drop, MKS Group trader James Gardiner said “a bounce, or at least a consolidation, is well overdue.” He pegs the next support level for gold at around $1,074 and then at $1,050.

US gold for December delivery gained 0.2 percent to $1,090.30 an ounce.

While the market braces for the first US rate hike since 2006, a consensus is forming at the European Central Bank to take the interest rate it charges banks to park money deeper into negative territory in December, in a move that could weaken the euro and push up inflation.

Lonmin  priced its $407 million share issue at a 94 percent discount as the platinum miner fights for survival in the face of low prices and after knocking $1.8 billion off the value of its assets.

AngloGold Ashanti said it lost 47,000 ounces in production in South Africa during the three months to the end of September because of government mandated safety stoppages in a quarter in which five of its miners died on the job.

MARKET NEWS

The dollar hovered just below a seven-month peak against a basket of major currencies, having consolidated its payrolls-inspired rally in a subdued session overnight.

Asian shares slipped to one-month lows as the spectre of higher borrowing costs in the United States and slower global economic growth prompted investors to trim their exposure to riskier assets.

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