Sunday, 9 November 2014

Gold Drops Again After a Short Rally

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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