The rout that sent gold prices to a four-year low is also shaking boredom out of the market, with a rebound in volatility thats giving some investors more reason to sell.
The metals 30-day volatility is close to the highest since January, according to data compiled by Bloomberg. The measure in October touched the lowest since 2010, with investors ignoring gold in favor of equities for most of the year.
Gains for the U.S. labor market lured the bears back. The metal erased its 2014 advance just before the Federal Reserve said it would stop buying bonds. The declines accelerated as the dollar climbed to a five-year high against a basket of 10 currencies and tumbling energy costs signaled tame inflation. In the week ended Nov. 4, hedge funds cut net-bullish gold bets by the most this year, and short holdings rose for the first time in a month, the most-recent U.S. government data show.
Gold futures for delivery in December fell 0.3 percent to settle at $1,159.10 an ounce at 1:40 p.m. on the Comex in New York. Earlier, the price climbed as much as 0.6 percent. On Nov. 7, the metal touched $1,130.40, the lowest for a most-active contract since April 2010.
Source : Bloomberg