Commerzbank thinks gold could fall another $50 based on speculator moves
by Rachel Koning Beals
Gold futures traded at a 3 1/2-month low near $1,200 an ounce Tuesday and are now down about $100 from a 15-month high struck in early May as anticipated higher interest rates continue to dent the precious metal.
Gold shed over 3% last week and is off some 6% for May.
The latest big market driver was a Friday speech by Federal Reserve Chairwoman Janet Yellen. She spoke during an interview at Harvard and said it’s appropriate for the Fed to gradually and cautiously increase the overnight interest rate over time. Data early Tuesday revealing the biggest jump in consumer spending in April in about seven years only boosted the gold market’s view that the Fed could move on rates sooner versus later. The Fed next meets mid-June.