Gold falls to over 10-month low as Fed signals more hikes in 2017

By: |
Published: December 15, 2016 8:18:35 AM

Gold prices fell on Thursday to a new low in more than 10 months as the dollar surged after the U.S. central bank raised interest rates for the first time in a year and signalled further rate hikes for 2017.

Spot gold edged 0.4 percent lower to ,139.54 an ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb. 3. The yellow metal fell over one percent in the prior session. (Express Photo)Spot gold edged 0.4 percent lower to ,139.54 an ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb. 3. The yellow metal fell over one percent in the prior session. (Express Photo)

Gold prices fell on Thursday to a new low in more than 10 months as the dollar surged after the U.S. central bank raised interest rates for the first time in a year and signalled further rate hikes for 2017.

FUNDAMENTALS

* Spot gold edged 0.4 percent lower to $1,139.54 an ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb. 3. The yellow metal fell over one percent in the prior session.

* U.S. gold futures fell nearly 2 percent to $1,141.80 per ounce. The prices fell to $1,136.4 an ounce earlier in the session to their lowest since Feb. 1 and registered their biggest percentage fall in one month.

* The dollar index, which measures the greenback against a basket of currencies, was up 0.7 percent at 102.490. The dollar hovered near a 14-year peak against a basket of major currencies on Thursday.

* The U.S. Federal Reserve raised interest rates on Wednesday and signalled a faster pace of increases in 2017 as central bankers adapted to the incoming Trump administration’s promises of tax cuts, spending and deregulation.

You may also like to watch

* U.S. retail sales barely rose in November and industrial production recorded its biggest drop in eight months, suggesting some loss of momentum in economic growth in the fourth quarter.

* Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.80 percent to 849.44 tonnes on Wednesday.

* Human rights groups on Wednesday welcomed a decision by Thailand to close the country’s only active gold mine by the end of the year as the mine’s operator said it had laid off the employees.

* The amount of gold dug up by people working informally in Mali could soon rival official production thanks to demand from domestic refineries, officials in the West African nation say.

* Turquoise Hill Resources Ltd said on Wednesday it had resumed concentrate shipments from its giant copper-gold Oyu Tolgoi mine in Mongolia following talks with Chinese and Mongolian authorities.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.