Tuesday, November 17, 2015

Gold Pares Gains As focus Back on US rate Hike Expectation

Gold pared gains on Monday, after an initial flow of safe-haven buying following the attacks in Paris slowed down and investors' focus returned to expectations for the US Federal Reserve to raise interest rates in December.

Spot gold rose as much as 1.4 per cent to a 10-day high of $1,097.90 an ounce, and was up just 0.1 per cent at $1,083.76 at 2:01 p.m. EST (1901 GMT), hovering above last week's six-year low at $1,074.26.

US gold futures for December delivery settled up 0.3 per cent at $1,083.60 an ounce.

Gold opened higher early this morning on the back of what happened over the weekend on perceived geopolitical risk, but it seems to be already short-lived because the bigger macroeconomic issues are the dollar's strength and the (expected) US rate hike,

Gold is typically seen as a safe investment during times of uncertainty. However, there has not been an increase in demand from retail investors since the Paris attacks, German coin dealer Degussa said in an emailed statement.

The Dollar rose against major currencies and US and European equity markets gained modestly, as markets grew more convinced the Fed will raise interest rates next month and investor worries faded over Friday night's attacks in Paris.

Read More - Gold News