adminSINGAPORE. – Gold hovered near its lowest in more than three months yesterday, hurt by consecutive losses in the past seven sessions as a robust dollar and the expectation of higher US interest rates curbed appetite for the metal. Spot gold had ticked up slightly to $1 162,85 per ounce by 3.14am GMT, after dropping 4 percent in the seven sessions to Tuesday. The metal slumped to $1 155,60 in the previous session, its lowest since December 1.
Bullion has taken a hit from stronger than expected US non-farm payrolls data on Friday that renewed the expectation the US Federal Reserve would begin to increase interest rates in June.
Higher rates could dent demand for assets that do not pay interest such as gold, and boost the dollar, which was trading at its highest in more than 11 years against a basket of major currencies.
“The possibility of further dollar gains is weighing on gold but Asian demand is emerging and may lend support for prices,” said HSBC analyst James Steel.
A robust dollar tends to dent gold’s safe-haven appeal, while also making it more expensive for holders of other currencies. – Reuters.
Online Reporter