Last week, gold prices slipped almost two per cent to a near six-year low. Experts say that this is due to pressure from a firm U.S. dollar and next month’s prospects of a Federal Reserve interest rate rise.
Spot gold hit US$1,052.46 an ounce—its lowest since February 2010. Moreover, spot prices were down 2.1 per cent for the week, with U.S. gold futures falling 1.3 per cent to $1,052.49 an ounce.
The Federal Reserve is also expected to raise U.S. rates for the first time in nearly a decade next month. These higher rates would raise the opportunity cost of holding non-yielding gold, diminishing demand and boosting the dollar.
“The omens are not positive for gold in the lead-up to the December rate meeting,” says Societe Generale analyst Robin Bhar. CJ
Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
