Gold price slips as traders weigh outlook for Fed interest rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
Gold tumbled in London on Monday, after reaching a one-week low, as a U.S. military strike on Syria appeared to be less certain ever since President Barack Obama said Saturday he would ask members of Congress to back him up first.
After reaching a three-month high of $1,433.83 an ounce on Aug. 28, the yellow metal fell 0.3% to $1,390.31 an ounce by 1:15 pm GMT in London, rallying from as low as $1,373.38, the worst price since Aug. 23.
Bullion for December delivery fell 0.5% to $1,389.80 on the Comex in New York, with analysts attributing the fall in gold futures to a weak global trend and on bets the US Federal Reserve will start to pare stimulus as the economy improves.
However upbeat economic data from China helped gold pare its loss and pull other metals to a gain.
Comments
frankinca
What percentage of the price of gold in US$ is a function of world unrest in Asia? My guess no more than 3%, but that is enough for traders, but not long term savers. I bet that the competition between the four major western bank’s traders is a game they enjoy and anyone who follows them seriously can make a buck, but until the miners join a coop to prevent this game, then they are at their mercy, instead of that of a united world market. Anyone for Baccarat.