Gold suffers worst run since October, approaches $1,200
Gold is sliding toward $1,200 an ounce in its longest losing run since October, as positive US economic figures reinforce expectations that yields on other investments will rise this year.
Bullion for immediate delivery fell 0.3 per cent to $1,204.14 an ounce by 9:40 am in London after touching the lowest level since February 1, according to Bloomberg generic pricing. It slid for a fourth day as yields on 10-year Treasuries gained for a ninth.
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The precious metal has been hit by Federal Reserve officials including Chair Janet Yellen talking up the prospect of higher rates. Better-than-expected US private jobs data this week also boosted the dollar before official payrolls figures on Friday. A stronger dollar makes gold costlier for those with other currencies.
Gold sank "before the key US nonfarm payrolls tomorrow and the Fed rate decision next week," Richard Fu, an analyst at Amalgamated Metal Trading in London, said by email. "Gold might still be moving within the range $1,100 to $1,260 per ounce." After the Fed raised rates once in 2015 and again in 2016, the pace may quicken this year. Bloomberg