Gold hits fresh 5-month low on tapering fears, US data eyed
London (Dec 4) Gold hit a 5-month low on Wednesday as investors awaited US economic data later in the week that could increase speculation the Federal Reserve will soon exit its asset purchase scheme.
The metal has been under pressure as markets believe a recovering economy could prompt the Fed to slow the pace of its $85 billion in monthly bond purchases as soon as December.
Investors realise the central bank will start reducing stimulus at some point, but the timing remains open to question.
Data on US gross domestic product on Thursday and the nonfarm payrolls report on Friday will be closely monitored, ahead of the central ban
US gold futures fell 0.7 per cent to $1,212.50 an ounce, while gold in euros dropped to its lowest since July 2010 at 892.75 euros an ounce in earlier trade.
Gold continued to lose ground despite a retreat in the dollar, which fell 0.3 per cent against a basket of currencies.
"There is definitely an attitude of wait-and-see in other assets and more selling pressure in gold and the next leg down is being awaited and the stimulus for that could be the numbers on Friday," Mitsubis ..
Spot gold fell one per cent to its lowest since July 5 at $1,211.44 an ounce earlier in the session and was down 0.9 per cent to $1,217.06 by 1052 GMT.
The metal has hit a fresh five-month low in every session this week. Technically, having broken resistance at $1,220, the metal is now vulnerable to to ..
US gold futures fell 0.7 per cent to $1,212.50 an ounce, while gold in euros dropped to its lowest since July 2010 at 892.75 euros an ounce in earlier trade.
