World Market And Commodity News
Gold hits two-month low in London
LONDON, Dec 7: Gold held near a two-month low on Wednesday, under pressure from an advancing dollar ahead of a vote on the US tax reform plan, but a potential government shutdown lent support to prices.
Spot gold had inched 0.1 per cent lower to $1,264.260 an ounce by 1420GMT after it hit its weakest since Oct 6 in the previous session. US gold futures rose 0.1pc to $1,266.70 an ounce.
In November, gold traded in its narrowest range in 12 years. Meanwhile, the Republican-controlled US House of Representatives voted on Monday to go to conference on tax legislation with the Senate, moving Congress another step closer to a final bill.
Adding pressure on gold was market expectation that the US Federal Reserve is almost certain to raise interest rates next week at its final monetary policy meeting for the year, a view reinforced by a Reuters poll of economists.
"Gold stays under pressure in the short run as the market is repricing a little bit more Federal Reserve activity next year and the global economy is sparking an uptrend, earnings coming in well and the value for safe-haven assets like gold is diminishing," said Dominic Schnider at UBS Wealth Management in Hong Kong.
Meanwhile, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , fell on Tuesday. But a November reading of global holdings of gold-backed ETFs showed they rose by 9.1 tonnes to 2,357 tonnes, with net inflows coming entirely from Europe as the dollar fell, the World Gold Council said.
Among other precious metals, silver fell 0.4pc to $16 an ounce, after hitting its lowest since mid-July in the previous session. Platinum eased 1.4pc to $910.40 an ounce, after touching its lowest since July at $899. Palladium gained 0.8pc to $990.25 an ounce. -Reuters