Gold was on track for its biggest monthly decline since June 2013, largely pressured by an imminent US interest rate hike by the Federal Reserve in December on expectations of improving economic growth. Spot gold on Wednesday was nearly unchanged at $1,188.86 an ounce by 0627 GMT. US gold futures were flat at $1,187.90 per ounce. Spot gold was down 6.83 percent so far this month.
Bullion has lost $150 from a November 9 post US election high of $1,337.40 per ounce, hurt by a rally in the US dollar on surging Treasury yields as investors believed President-elect Donald Trump's policies would invoke faster inflation. "Markets seem to accept Trump as good for business," said Joshua Rotbart, managing partner at Hong Kong-based bullion services provider J. Rotbart & Co.
"His statements about increasing investments in infrastructure, tax reform aimed at strengthening local businesses and import reforms to prioritise local businesses have increased growth expectations," he added. "This has triggered a risk-on trend which has seen cash flows from gold-backed securities to risky assets like equities."
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