Gold futures fell,
posting the longest slump in seven weeks, as the dollars rally to a
five-year high eroded the appeal of the precious metal as an alternative
investment.
Futures approached a
four-year low as the greenback climbed against a basket of 10 currencies
after Japan expanded monetary stimulus, while the Federal Reserve moved
closer closer to its first interest-rate increase in eight years.
On Oct. 31, gold
capped a consecutive monthly decline, the first this year, after
touching $1,160.50 an ounce, the lowest since July 2010. Higher interest
rates reduce the metals allure because the commodity generally offers
investors returns only through price gains, while a stronger dollar
typically cuts demand for a store of value. Societe Generale SA and
Goldman Sachs Group Inc. are among banks expecting further losses for
gold.
Gold futures for
December delivery dropped 0.2 percent to settle at $1,169.80 at 1:47
p.m. on the Comex in New York after touching $1,161. The metal declined
for the fourth straight session, the longest slump since Sept. 12.
Source : Bloomberg
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