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Gold Suffers Worst Run Since October as Slide Below $1,200 Looms

Image: Gold Suffers Worst Run Since October as Slide Below $1,200 Looms

Thursday, 09 Mar 2017 07:19 AM

Gold is sliding toward $1,200 an ounce in its longest losing run since October as positive U.S. economic figures reinforce expectations that yields on other investments will rise this year.

Bullion for immediate delivery fell 0.3 percent to $1,204.14 an ounce by 9:40 a.m. in London after touching the lowest level since Feb. 1, according to Bloomberg generic pricing. It slid for a fourth day as yields on 10-year Treasuries gained for a ninth.

The precious metal has been hit by Federal Reserve officials including Chair Janet Yellen talking up the prospect of higher rates. Better-than-expected U.S. private jobs data this week also boosted the dollar before official payrolls figures on Friday. A stronger dollar makes gold costlier for those with other currencies.

Gold sank "before the key U.S. nonfarm payrolls tomorrow and the Fed rate decision next week," Richard Fu, an analyst at Amalgamated Metal Trading Ltd. in London, said by email. "Gold might still be moving within the range $1,100 to $1,260 per ounce."

After the Fed raised rates once in 2015 and again in 2016, the pace may quicken this year.

The so-called dot plot illustrating policy makers’ projections suggests three increases this year. While economists see U.S. nonfarm payrolls declining, possibly supporting gold, their projections have underestimated employment growth in February for five years in a row.

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Gold is sliding toward $1,200 an ounce in its longest losing run since October as positive U.S. economic figures reinforce expectations that yields on other investments will rise this year.
gold, metal, investor, safe haven
221
2017-19-09
Thursday, 09 Mar 2017 07:19 AM
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