Sentiment from last week continues to weigh on gold prices today

London (Mar 24)  Gold trading has today started the week on a bearish note and is currently trading down 0.60 percent at $1,326.60 an ounce. Gold last week lost 4.8 percent on suggestions that the US benchmark interest rate will be raised next year, which led to a strengthening of the US dollar and a retreat from safe-haven gold.

The Fed last week continued to scale back its economic stimulus and Fed chair Janet Yellen said an interest rate hike could be expected about six months after the bond buying programme has ended.

Investors are “not so concerned about the tapering part but rising US interest rates,” says Fat Prophets resource analyst David Lennox. “Yellen’s comments will now be in the back of investors’ minds until we get into 2015.”

Source:  invezz