Gold heads for biggest monthly fall in 2-1/2 years

Tuesday, 1 December 2015 00:16 - - {{hitsCtrl.values.hits}}

LONDON, Nov 30 (Reuters) - Gold steadied on Monday but remained close to its lowest level in nearly six years as the dollar hit a multi-month high and was on track for its steepest monthly slide in 2-1/2 years on prospects of a U.S. interest rate rise this year.

Spot gold was up 0.4% at $1,061.91 an ounce by 1434 GMT, just above Friday’s trough at $1,052.46, the lowest since February 2010.

The dollar was at an eight-month high against a basket of major currencies, making gold more expensive for holders of other currencies.

Bullion has lost 7% of its value in November, its biggest monthly fall since June 2013, as investors remained focused on a possibly imminent rate hike in the United States.

Gold, a non-interest-paying asset, could take a hit from higher rates as the dollar gains and the opportunity cost of holding the precious metal increases.

The U.S. Federal Reserve holds its next policy meeting on Dec. 15-16.

“Gold’s negative correlation with the dollar is likely to continue because of the expectations of the U.S. interest rates,” ETF Securities Martin Arnold said.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.