Gold falls to over 10-month low as Fed signals more hikes in 2017

Gold prices fell on Thursday to a new low in more than 10 months as the dollar surged after the US.

Published: 15th December 2016 07:02 AM  |   Last Updated: 15th December 2016 07:02 AM   |  A+A-

A saleswoman checks the weight and quality of gold jewellery inside a showroom in Mumbai, India, August 13, 2015. REUTERS

By Reuters

Gold prices fell on Thursday to a new low in more than 10 months as the dollar surged after the U.S. central bank raised interest rates for the first time in a year and signalled further rate hikes for 2017.


* Spot gold edged 0.4 percent lower to $1,139.54 an ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb. 3. The yellow metal fell over one percent in the prior session.

* U.S. gold futures fell nearly 2 percent to $1,141.80 per ounce. The prices fell to $1,136.4 an ounce earlier in the session to their lowest since Feb. 1 and registered their biggest percentage fall in one month.

* The dollar index, which measures the greenback against a basket of currencies, was up 0.7 percent at 102.490. The dollar hovered near a 14-year peak against a basket of major currencies on Thursday. [USD/]

* The U.S. Federal Reserve raised interest rates on Wednesday and signalled a faster pace of increases in 2017 as central bankers adapted to the incoming Trump administration's promises of tax cuts, spending and deregulation.

* U.S. retail sales barely rose in November and industrial production recorded its biggest drop in eight months, suggesting some loss of momentum in economic growth in the fourth quarter.

* Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.80 percent to 849.44 tonnes on Wednesday. [GOL/ETF]

* Human rights groups on Wednesday welcomed a decision by Thailand to close the country's only active gold mine by the end of the year as the mine's operator said it had laid off the employees.

* The amount of gold dug up by people working informally in Mali could soon rival official production thanks to demanding from domestic refineries, officials in the West African nation say.

* Turquoise Hill Resources Ltd said on Wednesday it had resumed concentrate shipments from its giant copper-gold Oyu Tolgoi mine in Mongolia following talks with Chinese and Mongolian authorities.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp