Business

Gold slips

Latest Update: November 17, 2016 | 109 Views
gold

LONDON: Gold eased on Wednesday as the dollar climbed to a 14-year high against a currency basket, extending a week-long rally driven by a surge in Trea­sury yields after Donald Trump’s election to the US presidency.

The metal has shed more than $100 an ounce from last Wednesday’s post-election high on the back of the sharp rise in bond yields and burgeoning appetite for risk.

Spot gold was down 0.1 per cent at $1,226.85 an ounce at 1453 GMT, while US gold futures for Decem­ber delivery were up $2.40 an ounce at $1,226.90.

Major banks and investors have begun to debate the possibility of another move towards parity bet­ween the dollar and the euro, as the US currency benefited from expectations of an inflationary push from the future Trump administration.

Investor appetite for gold remained slack, with the world’s largest gold-backed exchange-traded fund, SPDR Gold Shares , saying its holdings fell another 1.5 tonnes on Tuesday to a 4-1/2 month low of 927.45 tonnes.

Silver was down 0.7pc at $16.96 an ounce, and platinum was 0.2pc lower at $933.24. Palladium was up 1.2pc at $714.25.

Reuters