falls to four-month low - 18th March 2015
has fallen to a four-month low in volatile dealings,
on investor jitters ahead of a Federal Reserve policy
meeting that may offer further clues to support expectations
of a mid-2015 rise in US interest rates.
gold fell as low as $US1,142.86 an ounce in earlier
trade, its lowest since November 7, and was down 0.6
per cent at $US1,147.06 by 2.34 pm EDT (1834 GMT,
0534 Wednesday AEDT).
gold futures for April delivery settled down $US5
at $US1,148.20 an ounce.
platinum tumbled to a near six-year low at $US1,084.50
per ounce as weaker gold prices and improving supply
took a toll on prices. Prices recovered and were down
1.2 per cent at $US1,091.74 an ounce, while its discount
to gold expanded to around $US55 an ounce, the widest
since March 2013.
policymakers started their two-day meeting on Tuesday,
and many analysts expect them to remove a "patient"
reference to rate rises from their policy statement.
That would put them a step closer to their first rise
do expect gold to fall further if the Fed removes
the word 'patient' from their statement, and the trading
action could be very volatile for investors,"
online broker AvaTrade chief market analyst Naeem
low for gold could be (around) $US1,058." Higher
interest rates could dent demand for assets such as
bullion that do not pay any interest.
traders are unnerved about the prospect of an earlier
rate hike from the Federal Reserve and its impact
on the dollar," said Fawad Razaqzada, technical
analyst for Forex.com in London.
Razaqzada said that if the Fed drops the closely watched
"patient" from its statement on Wednesday,
this could buoy the US dollar and pressure assets
priced in the greenback such as gold and silver.
still expect some negative reaction but maybe we are
90 per cent there for that one and the attention will
start to move on how fast rates will be increased,"
Macquarie analyst Matthew Turner said.
sentiment towards gold continued to be bearish. ETF
Securities, an operator of gold-backed exchange-traded
products, said its long gold funds saw the largest
weekly outflows since inception last week.
Laidler, the head of the firm's Australia and New
Zealand operations, said more than $US376 million
in funds exited last week.
was down 0.6 per cent at $US15.52 an ounce, while
palladium fell 2.2 per cent to $US760.50 an ounce.