Global gold prices continued their
southern journey Monday (Nov 10) as it dropped nearly one per cent after a
short-covering rally in the previous session.
A softer-than-expected US jobs report
hit the yellow metal as it fell as much as 0.9 per cent to $1,168.10 before
recovering slightly to trade down about $8 at $1,170.67.
Gold remained below a key
$1,180-an-ounce level that could pressure the metal back to 4-1/2-year lows
reached last week on a strong dollar and fears regarding an upcoming rate hike
by the US Federal Reserve.
On Friday, gold fell to $1,131.85, its
lowest since April 2010, before recovering to post its biggest one-day gain in
five months.
Investor positions show that the
sentiment towards bullion remains bearish and the metal could plumb new lows
before the end of the year.
Holdings in SPDR Gold Trust, the world’s
largest gold-backed exchange-traded fund also fell 0.78 per cent to 727.15
tonnes on Friday, it’s lowest in six years.
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