Gold slips to near month low as US Fed signals rate increase in December
London — Gold fell to its lowest price in nearly four weeks on Thursday, as the US Federal Reserve signalled it was on track to raise US interest rates again in December, driving the dollar to two-month highs versus the yen. The metal is highly sensitive to rising US interest rates, which boost the cost of holding nonyielding bullion relative to other assets, while lifting the dollar, in which it is priced. Spot gold was down 0.5% at $1,295.51 an ounce at 10.05am GMT, having earlier touched its lowest since late August at $1,292.84. US gold futures for December delivery were down $17.40 an ounce at $1,299. The metal has pulled back more than $60 an ounce since hitting its highest in more than a year earlier in September at $1,357.54. "The opportunity cost of holding gold seems to be going up now, and that’s bad news for gold," LBBW’s head of commodity research Frank Schallenberger said. "We went up to $1,350 so quickly, and now we have consolidation. With the wording from the Fed, t...
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