Gold
held its drop and headed for a fifth straight quarterly loss on
prospects for a rise in U.S. interest rates this year as Federal Reserve
policy makers honed their message on the outlook for borrowing costs.
Bullion
for immediate delivery traded at $1,146.80 an ounce at 8:50 a.m. in
Singapore from $1,146.20 on Friday, when it closed 0.7 percent lower,
according to Bloomberg generic pricing.
Gold
lost 5.7 percent over the past year as the Fed geared up to raise rates
for the first time in almost a decade. St Louis Fed chief James Bullard
floated on Friday the possibility of an increase as soon as next month
after Chair Janet Yellen said she saw a case for tightening policy in
2015. Higher rates curb the appeal of the metal, which doesn’t pay
interest or give returns like competing assets such as bonds and
equities.
Odds
on a move by the Fed in October are at just 18 percent, while there’s a
43 percent chance for a December move. Monthly U.S. payrolls data due
this week may give further clues on the strength in the labor market.
Source: Bloomberg
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