(Bloomberg) -- Gold fell in New York, heading for
its fourth weekly decline in five weeks, on speculation that
higher global interest rates will reduce demand for the precious
metal as an alternative investment. Silver also dropped.
Traders now assign a 44 percent chance the U.S. Federal
Reserve will raise rates by 25 basis points by December,
compared with zero percent a month ago, according to options on
Fed funds futures. Gold has fallen 2.7 percent this week after
the Reserve Bank of New Zealand and the European Central Bank
raised rates. Holding gold becomes less attractive when rates
rise because the metal has no fixed returns.
Read more at Bloomberg Commodities News
its fourth weekly decline in five weeks, on speculation that
higher global interest rates will reduce demand for the precious
metal as an alternative investment. Silver also dropped.
Traders now assign a 44 percent chance the U.S. Federal
Reserve will raise rates by 25 basis points by December,
compared with zero percent a month ago, according to options on
Fed funds futures. Gold has fallen 2.7 percent this week after
the Reserve Bank of New Zealand and the European Central Bank
raised rates. Holding gold becomes less attractive when rates
rise because the metal has no fixed returns.
Read more at Bloomberg Commodities News
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