Gold was hurting from overnight losses on Tuesday and the metal looked vulnerable to a drop back to multi-year lows on expectations of a US rate hike later this week. Gold has already slid 10 percent for the year, its third straight annual decline, in anticipation of higher rates.
Spot gold had ticked up 0.1 percent to $1,063.80 an ounce by 0613 GMT, after a 1.1-percent slide on Monday. The price is only about $20 short of a near six-year low of $1,045.85 reached earlier this month. "Gold continues to weaken as investors await this week's FOMC," ANZ analysts said in a note, referring to the Federal Open Market Committee. "We believe the pace of the rate hikes will hold the key for gold prices in the coming year." Traders and analysts expect further declines.
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