World Economy

Gold Recovers From Nine-Month Low

Gold Recovers From Nine-Month LowGold Recovers From Nine-Month Low

Gold pared a third weekly drop as the dollar halted a rally that sent bullion prices to a nine-month low and pushed silver into a bear market. Bullion’s first gain in four days cut this week’s loss to 1.5%. Prices have tumbled as strong economic data and the prospect of more spending after Donald Trump’s US election win boosted bets for higher interest rates. Investors are selling out of gold-backed funds at the fastest pace in three years, Bloomberg reported.

The metal rebounded on Friday as the Bloomberg Dollar Spot Index retreated from the highest in a decade. Gold’s decline earlier today stalled at $1,171.18 an ounce, which is near a 61.8% retracement of the rally from December to July. The Fibonacci figure is used by some traders and analysts to determine support levels.

Gold for immediate delivery rose 0.6% to $1,189.29 in London, according to Bloomberg generic pricing. It’s down 6.9% in November, heading for the biggest monthly drop since 2013. Traders are certain that the Federal Reserve will raise rates next month, curbing the appeal of owning bullion because it doesn’t provide any yield. Holdings in gold-backed funds have dropped 85.5 metric tons so far this month to 1,902 tons, the lowest since June, data compiled by Bloomberg show.

In other precious metals, silver rose 1.1% to $16.4691 an ounce in London, after earlier dropping to the lowest since June.

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