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LONDON. – Gold fell close to an earlier multi-year low yesterday, as the market awaited minutes of a recent Federal Reserve meeting which could reinforce bets of a rate hike next month. Declines were, however, capped by a lower dollar and risk aversion after a gunfight in Paris early in the morning. Spot gold was down 0,2 percent at $1,067.30 an ounce by 1315 GMT, after falling to $1,064.95 earlier, the lowest since February 2010. US gold futures for December delivery were down $2,30 an ounce at $1,066.50.
Silver tracked gold, dropping close to a 2-1/2-month low, down 0,5 percent at $14,07 an ounce, while platinum stood just above a seven-year low of $840,40 an ounce, hit earlier.
Bullion prices have fallen for 14 out of 16 sessions, under pressure from prospects for the first US. interest rate hike in nearly a decade in December. Higher rates would increase the opportunity cost of holding the non-yielding metal.
Data on Tuesday showing US consumer prices increased in October further fuelled those expectations, while market odds for a December hike moved from around 30 percent to 66 percent.
“Overall, financial markets are more or less positioned that the Fed will hike this year, and the general trend for precious metals is on the downside,” ABN Amro analyst Georgette Boele said. The dollar eased 0,1 percent against a basket of currencies , retreating from an earlier seven-month high. – Reuters.
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