Gold held near a five-year low as economic data from the U.S. shifted investors’ focus back to when the Federal Reserve will start to raise borrowing costs and away from geopolitical tensions in the Middle East that had buoyed prices.
Bullion for immediate delivery was little changed at $1,071.48 an ounce by 1:52 p.m. in London after dropping to $1,064.55 on Nov. 18, the lowest level since February 2010, according to Bloomberg generic pricing. Prices gained on Tuesday after Turkish forces downed a Russian fighter jet amid the conflict in Syria.
Gold is headed for a monthly loss as prospects for higher interest rates damp the metal’s allure as a store of value. Orders for business equipment in the U.S. climbed more than economists forecast in October and jobless claims slid to the lowest in a month. Still, the Atlanta Fed’s GDPNow tracking model cut its forecast for fourth-quarter economic growth to 1.8 percent on Nov. 25, from 2.3 percent a week earlier, according to its website.
Odds of a move by the Fed in December are 72 percent, up from 50 percent at the end of October, Fed-fund futures data show. Gold has dropped 9.6 percent this year as strengthening U.S. data supported the case for higher rates, boosting the dollar.
The U.S. will release initial jobless claims on Dec. 3 and non-farm payrolls a day later.
Holdings in gold-backed exchange-traded products shrank for a sixth day to 1,493.52 metric tons on Wednesday to the lowest level since February 2009, data compiled by Bloomberg show. China’s net imports of the metal from Hong Kong slid for the first time in four months, according to data from the Hong Kong Census and Statistics Department.
Spot silver advanced 0.4 percent, platinum increased 0.9 percent while palladium gained 0.8 percent. U.S. financial markets will be shut Thursday for the Thanksgiving Day holiday. Gold for February delivery rose 0.1 percent to $1,070.70 an ounce in electronic trading on Comex in New York.
Source : Bloomberg