Gold prices slide to 10-month low as fund selling spree continues
Singapore/London: Gold sank to the lowest in almost 10 months and funds backed by the metal continued to shrink on speculation the US economy is strengthening.
Metal for immediate delivery lost 0.4% to $1,168.10 an ounce as of 11:57 am in London. Assets in exchange-traded funds backed by bullion declined for a 14th day, the longest run since March 2015.
“Price and ETF flows are highly correlated, so it’s no surprise to see big hedge funds getting out,” said Adrian Ash, head of research at online-trading service BullionVault in London. “The market is facing a lot of pressure from the U.S., particularly with bond yields rising and the dollar so strong.”
Figures from the ADP Research Institute on Wednesday showed private employers added 216,000 workers in November, the most in five months. The US payrolls report is due Friday.
Palladium rose as much as 0.7% to $775.45 an ounce, the highest since June 2015. Platinum fell as much as 1.3% to $900.45 an ounce, the lowest since February. Silver fell 1.1% to $16.3274 an ounce. Bloomberg