Gold hits low

LONDON. — Gold hit a one-week low yesterday as a stronger dollar, upbeat sentiment on equities and positive US growth data dented the appeal of the safe-haven asset, though the metal was still stuck in its narrowest monthly range in 12 years.

The dollar held firm after US jobless and consumer spending data, having taken support from Wednesday’s uplift on third-quarter US economic growth. Strength in the US currency makes dollar-priced gold costlier for non-US investors.

Global equities were on course to finish November with a 13th consecutive monthly gain, though a dive in US technology stocks left investors wondering whether the longest global equity bull run in living memory might be starting to splutter.

Also denting investor optimism and signalling underlying support for gold going forward, investors were growing wary about the staggered progress of US tax reform legislation.

“Optimism (in equities) is at record highs, so it should come off a bit, which would be reasonably positive for gold. But the stronger dollar will cap any gains that come on the back of (that),” said Martin Arnold, strategist at ETF Securities.

“Current levels (in gold) are good value and we don’t expect the range over the past month to be broken.”

Spot gold was down 0,5 percent at $1,277.58 an ounce by 1332 GMT, having earlier hit its lowest since November 22 at$1 276.51.