Friday, 18 December 2015

Gold holds losses from biggest dip in five months

Gold steadied on Friday but largely retained losses made a day earlier when the metal suffered its biggest slide in five months after the Federal Reserve hiked US rates for the first time in nearly a decade. 


* Spot gold ticked up 0.3 percent to USD 1,053.96 an ounce by 0051 GMT as the dollar eased on profit taking following sharp gains. 

* The metal slid 2 percent on Thursday, its biggest one day slide in five months. It is down 2 percent for the week in its worst weekly performance in six weeks. 

* Gold has come under intense sell off since the Federal Reserve raised the range of its benchmark interest rate by a quarter of a percentage point on Wednesday, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs. 

* The move sent the dollar to a two-week high on Thursday against a basket of major currencies. 

* On the other hand, gold saw little interest, with investors sending the yellow metal to USD 1,047.25 in the previous session, close to a near-six-year low. 

* Gold has tumbled 11 percent this year, largely on uncertainty around the timing of the rate rise and on fears that higher rates would hit demand for the non-interest-paying metal. 

* Many are predicting further drops. Gold is likely to test the key USD 1,000 level soon, technical analysts said. 

* Assets in SPDR Gold Trust, the world's top gold-backed exchange-traded fund, fell 0.70 percent to 630.17 tonnes on Thursday, the lowest since September 2008.

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