Gold in Longest Slump Since November as Fed Signals Higher Rates

Assets in gold ETFs extend gain to highest since November 2013.

by Ranjeetha Pakiam (Bloomberg)
Mine Web

Gold fell for a fifth day, heading for the longest slump in six months, as more Federal Reserve officials weighed in with comments that supported the case for higher borrowing costs, strengthening the outlook for the dollar and denting the metal’s allure.

Bullion for immediate delivery declined as much as 0.5% to $1 242.95 an ounce and was at $1 243.83 at 3:05pm in Singapore, according to Bloomberg generic pricing. Five days of losses would be the longest stretch since November 17.

Gold has dropped over the past three weeks as the dollar has advanced, eroding 2016’s gains as traders price in higher chances of a US rate increase sooner rather than later, supported by comments from a slew of policymakers and the minutes of the Fed’s April meeting.

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