Gold steadied not far above a 5-1/2-year low on Monday, struggling to scale higher at the start of the month after its deepest loss in two years in July, as expectations for a near-term hike in US interest rates kept sellers nearby. Gold's rout deepened last month as the dollar strengthened after upbeat US economic data and comments by the Federal Reserve signalled it was on course to raise interest rates for the first time in nine years.
That rate hike could come as early as September, presenting more downside risk for non-interest yielding gold. "The story's simple yet powerful enough to inject a bearish trend for gold," said Barnabas Gan, an analyst at OCBC Bank. Spot gold was flat at $1,095.36 an ounce by 0630 GMT. The metal fell as low as $1,079.50 on Friday, near last month's trough of $1,077, its weakest since February 2010. Bullion lost almost 7 percent in July, its steepest monthly drop since June 2013. It fell for a sixth straight week last week, its longest retreat since 1999.
Comments
Comments are closed.