Gold prices hit longest drop in five weeks

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The price of gold has reached its longest drop in five weeks after falling 8.4 per cent since November 6. Just last week, the metal dropped to a four-year low, all as a result of concern that the Federal Reserve is set on raising U.S. interest rates. A rise in interest rates could potentially weaken the demand for precious metals as an alternative investment.

The Federal Reserve has begun a two-day meeting in order to debate the pace of raising borrowing costs. Jeffrey Currie, head of commodity research at Goldman Sachs Group Inc., told Bloomberg that gold will continue to drop as the U.S. economy continues to improve. CJ

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