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Gold Hovers Below $1200 On Year-End Trade

ByICN.com
Published 12/24/2013, 04:24 AM
Updated 07/09/2023, 06:31 AM
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Gold prices hovered below the $1200 level Tuesday in thin year-end trade with continuously strong data from the U.S. damaging gold’s allure.

The tapering of the Federal Reserve’s stimulus measures also dimmed the metal’s appeal as a hedge against inflation.

Gold is down nearly 30 percent for the year, and is headed for its biggest annual decline in 32 years.

- Spot gold was last up 0.02% at $1198.77 an ounce at 03:51 EST, after dropping 0.3% percent the previous session.

Gold prices fell to its lowest levels in six month last week after the U.S. Federal Reserve announced it would begin tapering its $85 billion in monthly asset purchases.

Data Tuesday showed U.S. consumer sentiment at its highest in five months and spending shot up to its strongest month since the summer heading into the end of the year.

The latest signs of a sustained progress in the U.S. economy are adding to hopes of a stronger 2014.

SPDR Gold Trust, the world`s largest gold-backed exchange-traded fund, said its holdings fell 8.40 tonnes to 805.72 tonnes on Monday - the lowest in nearly five years.

Traders fear gold could test six-month lows in thin pre-holiday trade. However, volumes traded on the exchange were about 12 tonnes - the lowest in a week.

Precious metals were also down early Wednesday. Prices of gold and other precious metals prices in the U.S. dollar were also under pressure by recent gains in the U.S. currency.

The Dollar index, which tracks the performance of the U.S. dollar agianst a basket of other major currencies, inched up to 80.71, compared with 80.56 late Tuesday.

- Spot silver was last down 0.59% at $19.36 an ounce.

- Spot platinum was last down 0.14% at $1327.65 an ounce.

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