Gold
traded near the lowest level in more than four months after the U.S. Federal
Reserve signaled that policy makers may reduce monthly bond purchases in the
coming months and investment holdings contracted.
Bullion
for immediate delivery fell 0.2 percent and gained 0.4 percent, before trading
$4 higher at $1,248.89 an ounce at 9:03 a.m. in Singapore. Prices lost as much
as 2.7 percent to $1,241.13 yesterday, the lowest since July 9. Gold for
December delivery dropped 0.9 percent to $1,246.80 an ounce on the Comex.
Prices
slumped 25 percent this year, heading for the first annual loss since 2000,
amid expectations that the Fed will trim its $85 billion in monthly asset
purchases as growth picks up. Policy makers expected data would signal further
improvement in the labor market and “thus warrant trimming the pace of
purchases in coming months,” according to minutes of the Fed’s October meeting
released yesterday.
U.S.
retail sales advanced 0.4 percent in October, the Commerce Department said
yesterday, while sales of previously-owned U.S. homes fell 3.2 percent in
October to a 5.12 million annual rate, the fewest since June.
(Source: Bloomberg)
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