London — Gold hit a two-and-a-half-week low on Monday as the dollar rose ahead of a two-day Federal Reserve meeting and as global equities surged. The dollar hit an eight-week high against the yen as data showing a pick-up in US consumer prices increased bets that the Fed could raise interest rates again in December. Investors also expect the Fed will announce plans to start trimming its balance sheet at its meeting on Tuesday and Wednesday in a move that should support the dollar and weigh on dollar-priced gold. World stocks hit a record high ahead of the Fed meeting, with investors favouring risky assets ahead of perceived safe havens such as gold. Spot gold was down 0.4% at $1,313.58/oz by 11.49am GMT, having earlier touched $1,312.03, its lowest since August 31. US gold futures for December delivery fell 0.6% to $1,317.20. "Gold could fall below $1,300 in the short term, but the question remains how people perceive the US economy and the need for higher interest rates," said Ole...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.