Will 2013 register the first annual decline in the price of gold in 13 years?
*Bloomberg, by Nicholas Larkin & Glenys Sim, December 2, 2013
”Gold Falls on Speculation U.S. Data to Boost Case for Tapering
Gold declined in New York, extending the worst monthly performance since June, on speculation a strengthening U.S. economy will warrant less stimulus.
Bullion futures slid 5.5 percent last month as minutes of the Federal Reserve’s latest meeting showed officials said they may reduce their $85 billion in monthly bond purchases ‘in coming months’ as the economy improves.
Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. U.S. data released last week showed jobless claims unexpectedly fell and leading economic indicators increased. Economists surveyed by Bloomberg News expect reports this week to show growth in American manufacturing and jobs.
‘Economic data that came out from the U.S. was mostly positive last week, maintaining fears that the Fed might consider tapering down its asset purchases,’ Mumbai, India-based Anand Rathi Commodities Ltd. said today in a report. ‘A December start to tapering, although unlikely, cannot be completely ruled out. Much of this could depend on how the payrolls data comes out this week.’
Bullion for February delivery fell 1.2 percent to $1,235.60 an ounce by 7:45 a.m. on the Comex in New York. Prices reached $1,226.40 on Nov. 25, the lowest since July 8. Futures trading volume was 12 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg showed. Gold for immediate delivery slid 1.4 percent to $1,236.05 in London.”
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