Gold Rises to Snap Biggest Losing Run in a Year

Prices are down 6.4% this month.

by Ranjeetha Pakiam and Thomas Biesheuvel (Bloomberg)
Mine Web

Gold advanced for the first time in ten days to snap its longest selloff in more than a year before data from the US that may determine the timing of monetary policy tightening.

Bullion for immediate delivery rose as much as 0.8% to $1 214.63 an ounce, before trading at $1 211.44 by 11:28am in London, according to Bloomberg generic pricing. Prices dropped to $1 199.80 on Monday, the lowest intraday level since February 17, and are down 6.4% this month, set for the biggest monthly decline since November.

Gold has slumped in May, trimming this year’s rally, as Federal Reserve chair Janet Yellen indicated that an interest-rate increase may be warranted in the coming months. Bets on a rate hike have risen to 30% for June and the odds are more than even for an increase by July, according to Fed funds futures.

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