Shares in most gold miners fell Monday as the precious metal price dropped more than 1% in early trading and was steadily heading to its largest single-session loss of the month.
US Federal Reserve Mining News
“The big problem is that monetary policy is contagious and central bankers no longer have any bullets left," said precious metal expert Diego Parilla.
Prices headed for a four-week-low on the Comex in New York.
The precious metal price remained rooted in a very narrow range as trading volumes were limited Monday, a public holiday in the US and Canada.
Prices of the metal have been fallen in the second half of this year as the prospect of a rate rise, the first since 2006, would lift the opportunity cost of holding bullion.
Gold will extend losses this year as U.S. interest rates increase, providing an opportunity for investors to buy the metal to benefit from a rebound spurred by Asian demand, according to Barclays Plc.
The minutes of the Federal Reserve’s December meeting released last week indicated that rates might not be raised before April.
There have always been skeptics concerning the current highs for stocks who argue the markets are juiced by cheap money — the unusually low interest rates being facilitated by the US Federal Reserve — as well as demand chasing a shrinking supply of shares and massive stock buy backs by public companies.
Markets seem to have interpreted Janet Yellen’s remarks as impending rate hikes as early as early 2015.
Futures for May delivery fell on New York to a session low of $2.931 a pound, the weakest level since March 17.
The rating agency reduced its 2014 forecast for average gold price from $1,200 to $1,100/Oz and from $20 to $18/Oz for silver.
While 2013 will go down as the year gold lost its glitter, 2014 may be remembered as the era it recovered some sparkle, yet it remained dull — analysts.
2013 will go down as the year when being “as good as gold” became an offense.
It plunged as much as 3% to $1,198 an ounce, the lowest price in almost six months.
Gold prices hit a 5-month low, and is now within shouting distance of the psychologically important $1,200 level and the three-year low of $1,180.
A September letter released on Monday shows what Ben Bernanke has to say about the controversial crypto-currency.
The precious metal hit its lowest since Oct. 17 at $1,275.80 an ounce.
St. Louis Fed President James Bullard says tapering may start next month.
Gold losing ahead of FOMC announcement but analysts expect small reduction in bond purchases.
Gold prices continued to nose-dive on Thursday, falling around 2,5% this morning to $1,329 after hitting a low $1,326 earlier.
Congressman Paul answers Redditors' questions in an 'Ask Me Anything' session.