Gold fell to extend
five weeks of losses after John Williams, president of the Federal
Reserve Bank of San Francisco, said that there was a strong case for a
December rate rise should economic data hold up.
Bullion for immediate
delivery retreated as much as 0.4 percent to $1,074.11 an ounce and
traded at $1,075.27 at 8:45 a.m. in Singapore, according to Bloomberg
generic pricing. Prices lost 0.5 percent last week after dropping on
Nov. 18 to $1,064.55, the lowest since February 2010.
Bullion lost 9.2
percent this year as expectations for a higher U.S. rates damped the
allure of the metal which doesn’t pay interest. Most economists in a
Bloomberg survey and traders of federal funds futures expect lift-off
next month from near-zero, where the bank’s key lending rate has been
since 2008. Money managers are holding a net-short position in the metal
for first time since August as long wagers shrunk to the smallest in
seven years.
The likelihood of
higher rates by year-end is 68 percent, up from 50 percent at the end of
October, futures data show. The U.S. central bank’s policy-setting
Federal Open Market Committee will convene in Washington on Dec. 15-16.
Spot silver and palladium fell, while platinum was little changed.
Source: Bloomberg
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