Gold price | Gold price weakens on US rate decision | MINING.com

Gold was trending lower on Wednesday after a US Federal Reserve interest rate decision indicated a rate rise as early as June next year and pointed to continued low inflation.

In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,186.60 an ounce, down $7.70 or 0.7% from Tuesday's close after recovering from a dip to $1,182.

The rate-setting Federal Open Market Committee scrapped its forecast that it will keep low interest rates for a "considerable time," but in new language designed to reassure markets the FOMC said it can be "patient" in deciding when to start raising rates.

The reaction on gold markets were relatively subdued given that higher interest rates is a big negative for gold which produces no yield and is strongly inversely correlated.

The FOMC also lowered its forecast for inflation over the shorter term, another blow to gold bulls who consider the metal as a hedge against rising prices.

The Fed decision also gave another boost to the already rampant US dollar which surged on the news to within shouting distance of more than 8-year high against the currencies of its major trading partners.

Gold and the dollar usually move in opposite directions.

After gains earlier in the day in after hours trade crude oil slipped again with the US benchmark West Texas Intermediate dipping to $55.90 a barrel from a day high of $58.98. Gold and oil prices tend to move in tandem and gold was beginning to look expensive compared to crude.

Another factor that adds pressure to the gold price is a fresh climb in US equities with the Dow Jones enjoying its best day of 2014 and the broader S&P500 index advancing over 2%.




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<b>Gold price</b> sinks below $1,200 | MINING.com

Posted: 15 Dec 2014 02:01 PM PST


A stronger dollar and fresh five-year lows for oil saw bears return to the gold market on Monday with the metal sinking through the psychologically important $1,200 an ounce level in relatively quiet trade.

On the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,193.30 an ounce in afternoon trade, down $29.20 or 2.4% from Friday's close and near the bottom of its trading range.

The oil price, which usually move in tandem with gold, tanked again on Monday to trade at $55.28 a barrel on Thursday, hitting the lowest level since May 2009.

The US dollar, which has an inverse relationship to gold, regained strength to within shouting distance of 8-year highs against the currencies of its major trading partners after stronger than expected manufacturing data from the US.

Monday's weakness has been against the trend of recent weeks when gold held up relatively well despite the negatives in the market.

Speculators in gold futures and options were also positioning for a stronger showing for the metal by adding 33% to bets that prices will rise.

Net long positions held by large investors like hedge funds jumped to just over 104,000 contracts or more than 10m ounces in the week to December 9 according to Commodity Futures Trading Commission data.

That's more than double the number of bets that prices will rise held by speculators a year ago, when gold was hovering near the same levels.




<b>Gold Price</b> Falls, December 15 - Business Insider

Posted: 16 Dec 2014 07:55 AM PST


And now gold is getting in the mix.

In morning trade on Tuesday, amid a turbulent day in global markets, the price of gold was tumbling.

Near 11 a.m. ET, gold was down to about $1,188 an ounce, about $30 an ounce lower than it was earlier Tuesday morning.

Among the other big decliners Tuesday was the Russian ruble, collapsing for the second day in a row to as low as 79 against the US dollar. This latest collapse in the ruble comes after the Russian central bank on Monday night unexpectedly raised interest rates by 6.5%.

Oil was also tumbling, with WTI crude falling below $54 a barrel and Brent crude falling below $59.

And so gold's tumble was on a bit of a delay relative to some other volatile assets, but better late than never.