Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Gold Heads Towards Near 4% Weekly Drop As Fed Taper Seems Imminent

ByICN.com
Published 11/22/2013, 04:40 AM
Updated 07/09/2023, 06:31 AM

Gold was on the way for the biggest weekly dip in over two months Friday as strong U.S. data lifted the prospect of an early taper to the Federal Reserve’s stimulus measures, and sending the metal to its lowest since July.

Positive US data was hurting prices as it could bolster the case for curbing stimulus soon. The Fed`s massive bond-buying program has burnished gold`s appeal as a hedge against inflation.

The number of Americans filing new claims for jobless benefits fell sharply last week and a gauge of factory activity hit an eight-month high in early November, hinting at some strength in the economy.

Uncertainty over the timing of the tapering has pushed investors to take money out of gold.

Holdings of SPDR Gold Trust , the world`s largest gold-backed exchange-traded fund, fell 3.6 tonnes to 856.71 tonnes on Thursday - their lowest since early 2009. Flows from or out of ETF’s reflect investor sentiment in bullion.

Billionaire hedge-fund manager John Paulson, the largest holder in the SPDR Gold Trust, told clients Nov. 20 that he wouldn’t personally invest more money in his gold fund because it isn’t clear when inflation will accelerate, according to a person familiar with the matter.

Outflows have totaled 450 tonnes this year. Physical demand picked up slightly due to the price drop but many buyers were still on the sidelines hoping for further declines, dealers said.

- Spot Gold last traded at $1244.36 an ounce, after slipping to its lowest since July 9 Thursday at $1236.72 per ounce.

- Spot silver last traded at $19.944 an ounce, compared with $19.888 late Thursday.

Gold and silver were both on track for a near three-and-a-half-per cent weekly drop.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.