Equityworld Futures-The price of gold fell to 9.5-month low in late trading the weekend on Saturday morning (26/11), heading for a third weekly decline in a row as investors sold distressed strengthening expectations of rising US interest rates in December.
Spot gold prices fell 0.04 percent at $ 1,182.76 an ounce, taking profits on short positions, from the previous $ 1,171.21, the lowest since February 8. The precious metal has fallen about 7 percent so far in November, made on track for its biggest monthly decline since June 2013. The decline largely eroded by the strengthening US dollar and expectations of US rate hike in December.
While the price of US gold futures for December delivery settled at $ 1,178.20.
The US Federal Reserve is expected to raise interest rates at a meeting in December. These results will further boost the dollar, making commodities more expensive for holders of other currencies.
The market is now appreciated nearly 100 probability of a Fed rate hike in December, according to CME FedWatch.
The US dollar has gained more than six percent against other major currencies since the beginning of October.
But at the weekend the US dollar weakened. The US dollar fell against major rivals on Friday as investors took advantage of the withdrawal of US bond yields and short week to consolidate the gains that have pushed the currency to a peak of nearly 14 years.
Overall physical gold holdings in exchange traded funds (ETF) has fallen more than five per cent to 54.135 million ounces since November 9, the day after the election.
Traders said the US monthly jobs data that was released on December 2 will be the key to market sentiment, but it probably will not deter the US central bank to raise interest rates.
Elsewhere, silver rose 1.1 percent to $ 16.43 per ounce and palladium fell 0.1 percent to $ 728.50.
Platinum cede 0.5 percent to $ 906.15, after earlier hitting its lowest since Feb. 8 at $ 901.00.
Analyst Equity Research Center estimates that the price of gold at the next trade has the potential to move up with the weakening US dollar. But if sentiment strengthened expectations of US rate hike happening again, would depress prices. Prices are expected to move in the range of $ 1,185- $ 1.187 Resistance, whereas if the price drops will move in the range of $ 1,181- $ 1.179 Support.