🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

PRECIOUS-Gold hits 9-1/2-month low on firm dollar; set for third weekly loss

Published 2016-11-25, 01:35 a/m
© Reuters. PRECIOUS-Gold hits 9-1/2-month low on firm dollar; set for third weekly loss
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
US10YT=X
-

* Spot gold to drop to $1,172/oz - Technicals

* Dollar at eight-month high against yen

* Platinum marks lowest since Feb. 8 (Updates prices)

By Apeksha Nair

Nov 25 (Reuters) - Gold fell 1 percent to its lowest in 9-1/2 months in Asian trade on Friday, heading for a third consecutive weekly decline, on expectations of a Federal Reserve rate hike and as the dollar extended its bull run against the yen.

Spot gold XAU= was down 0.4 percent at $1,178.64 an ounce by 0604 GMT. Earlier in the session, the metal dropped 1 percent to mark its lowest since Feb. 8 at $1,171.21 per ounce.

U.S. gold futures GCcv1 fell about 1 percent to $1,177.9 per ounce, after dipping earlier to its lowest since Feb. 5 at $1,170.30 per ounce.

The dollar rose to an eight-month high against the yen on Friday as U.S. bond yields resumed their rise in Asia after the Thanksgiving break shut markets in the United States. USD/

The 10-year U.S. Treasury note yield US10YT=RR rose about 5 basis points to 2.405 percent from the previous close on Wednesday.

"The dollar has been really strong this morning and is pushing high. The Shanghai arbitrage is trading $25 dollar premium, which seems to be suggesting that there is selling from Asia rather than buying," an investment bank trader said.

Bullion shed over 8 percent so far this month and has lost over $160 an ounce since the peak after the U.S. election on Nov. 9, hurt by a strong dollar and surging Treasury yields as investors bet on higher growth and inflation under U.S. president-elect Trump.

The metal has also been pressured by talks of an almost certain U.S. interest rate hike in December. is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

"The dollar is firm and triggering some selling (in gold). There were some stops around $1,180 and they were all taken," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

"There has been some physical buying, but that is not so strong and is not helping gold," Leung added.

Spot gold XAU= is expected to drop to $1,172 per ounce, as the support at $1,184 does not look to hold, according to Reuters technical analyst Wang Tao. XAG= rose 0.55 percent to $16.34 an ounce. Platinum XPT= slid 0.45 percent to $909.40, after having earlier hit its lowest since Feb. 8 at $901.00.

Both metals were on track to post a third straight weekly decline.

Palladium XPD= dropped 0.5 percent to $725.45.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.