Gold Holds Near 4-Year Lows As European Outlook Darkens

Washington (Nov 4)  Gold prices are little changed Tuesday morning, holding near four-year lows, amid growing speculation about US interest rate hikes.

However, the precious metal is finding some support after the  European Commission  lowered euro area growth forecasts.

Citing weak economy and slow improvement in the employment situation, the  European Commission  today lowered the euro area growth forecast for 2015 to 1.1% from 1.7% predicted in May. The outlook for this year has been cut to 0.8% from 1.2%.

 European Commission  reduced inflation projection for 2015 to 0.8% from 1.2%, and for the current year it has been trimmed to 0.5% from 0.8% earlier.

Gold futures for December delivery are down  USD0.50  or 0.04% at  USD1,169.30  an ounce, near a four-year low of  USD1,160.50  , touched last Friday.

On Monday, gold futures ended down  USD1.80  or 0.2% at  USD1,169.80  an ounce, extending losses to a fourth straight session.

The yellow metal lost its sheen as the dollar zoomed to 4-year highs on signs the Federal Reserve will start hiking rates sooner than earlier anticipated in response to upbeat economic data.

Silver for December is down  USD0.191  or 1.18% at  USD16.010  an ounce. Meanwhile, copper is down  USD0.037  or 1.22% at  USD3.028  per pound.

Markets are looking ahead to the  US Commerce Department's  report on trade balance for September, due at  8:30 am ET  . Later in the morning, at  10 am ET  , the  Commerce Department  will release its factory orders data for September.

Source: AllianceNews