Gold retreated to the
lowest level in four weeks on renewed concern that the Federal Reserve
will increase U.S. interest rates in December, denting demand for the
metal as a store of value.
Bullion for immediate
delivery fell as much as 0.7 percent to $1,134.39 an ounce, the lowest
level since Oct. 5, and traded at $1,139.45 at 9:06 a.m. in Singapore,
according to Bloomberg generic pricing. Prices dropped 1.9 percent last
week, the most since Aug. 28.
The precious metal
fell for the past five quarters amid speculation the Fed will raise
rates for the first time since 2006, diminishing the metal’s appeal
because it doesn’t pay interest. U.S. policy makers signaled they’re
still considering tighter monetary policy this year, surprising many
gold investors who had been buying on speculation that a spate of uneven
U.S. economic data would keep rates low for longer.
Traders see a 50
percent chance the U.S. central bank will raise its benchmark rate from
near zero in December, according to futures data compiled by Bloomberg
as of Friday. That’s up from 34 percent at the start of last week,
before the Federal Open Market Committee’s statement on Wednesday.
Among U.S. data this
week are figures on monthly non-farm payrolls, due on Friday. Before
that, Fed Chair Janet Yellen is scheduled to testify Wednesday before
the House Financial Services Committee.
Silver, platinum and palladium dropped on Monday.
Source: Bloomberg
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