Tags: gold | investors | growth | investor

Gold Loses Its Luster as Better US Growth Stokes Rate Concerns

Wednesday, 27 May 2015 11:05 AM

Gold is losing its shine.

Prices have erased almost all of this month’s gains, touching a two-week low on Wednesday. American consumer confidence is proving resilient and the housing market is gaining traction, reports showed this week.

The figures signaled that the economy is rebounding from its first-quarter slump, dashing the hopes of gold bulls who were betting that cooler growth would delay interest-rate increases.

Federal Reserve Chair Janet Yellen said last week that rates will be raised this year. Policy makers’ next meeting ends June 17. Higher rates drive investors to favor assets that pay interest, including new bonds, curbing the appeal of gold, which generally offers returns only through price gains.

“Yellen’s comments that interest rates are about to normalize and be raised has gold on the defensive,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview. “I’m not sure what’s going to break it out of this pattern.”

Gold futures for August delivery rose less than 0.1 percent to $1,188.20 an ounce at 10:23 a.m. on the Comex in New York, after reaching $1,183.90, the lowest since May 12. Aggregate trading was about double the 100-day average for this time, data compiled by Bloomberg show.

Prices are up 0.5 percent this month, paring earlier advances of as much as 4.2 percent.

Silver futures for July delivery fell 0.2 percent to $16.705 an ounce, falling for a third session, the longest streak since April 9.


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Gold is losing its shine. Prices have erased almost all of this month's gains, touching a two-week low on Wednesday.
gold, investors, growth, investor
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2015-05-27
Wednesday, 27 May 2015 11:05 AM
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