Gold bounced more than $20 an ounce since Wednesday’s multi-year
low, but lost ground again on Monday hurt by the strong greenback. Analysts at MKS, Switzerland, meanwhile, say the metal may benefit as traders begin to focus more heavily on how gradually the
Federal Reserve might hike interest rates rather than when those hikes
Minutes of the October Federal Open Market Committee meeting,
released last week, were widely interpreted as signaling an almost inevitable rate
hike next month. The Fed also said in the minutes that if officials do agree to remove monetary accommodation, they should do
After hitting a multi-year low of $1,062 an ounce on Wednesday, gold recovered to $1,087 on Friday.
"After touching a five and a half-year low on Wednesday, gold finally
found interest as investors shift their focus to the pace of potential
Interest-rates rises in the U.S. rather than when lift-off will occur,"
"The change in focus looks likely to have resulted in a correction to precious metals pricing and should result in short-term support as targets for gold extend to $1,095-$1,100."
On Monday Comex gold for December delivery traded at $1,069.50 an ounce, down 0.63%, while Comex silver for December delivery lost 1.21% to settle at $13.930 an ounce. The precious metals have been hurt by the strong dollar.
Gold futures have lost nearly 10% after hitting highs in mid-October amid mounting expectations the Fed will hike rates for the first time in nearly a decade at its mid-December meeting.
Higher borrowing rates going forward are bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.