Gold falls below $1,200 as bulls go into hiding
singapore — Gold is getting trampled on. Bullion traded below $1,200 an ounce as prospects for economy-boosting policies by President-elect Donald Trump help the Federal Reserve gear up for a rate rise, hoisting the dollar to the highest level in more than a decade just as US equities hit records.
Bullion for immediate delivery fell as much as 0.5 per cent to $1,182.95 an ounce and was at $1,184.45 at 3:37pm in Singapore, according to Bloomberg generic pricing. Prices sank to $1,181.84 on Wednesday, the
85.5 metric tonnes of assets in bullion-baked eTFs lost in November
lowest since February, and are down seven per cent this month, the most since June 2013. After entering a bear market on Wednesday, spot silver extended losses.
Investors in the metal that’s meant to preserve wealth in troubled times have been blindsided as they grapple with the consequences of Trump’s plans to revitalise growth and boost infrastructure spending.
“More than the Fed hike, it’s the dollar strength ahead of the FOMC meeting,” Gnanasekar Thiagarajan, director of Mumbai-based Commtrendz Risk Management Services, said by phone.
“It’s really not attractive to hold gold at this point in time. It’s looking very weak.”
Assets in bullion-backed ETFs have contracted 85.5 metric tonnes in November, retreating to 1,902 tonnes, the lowest level since June, according to data compiled by Bloomberg.