Gold drops to 4 week low as U.S. rate hike fears
Peter Walden, News Editor
2 Nov 2015, 2:28 p.m.
The gold price has fallen to its lowest level in four weeks as traders’ fear the Federal Reserve would like to raise rates before the end of 2015.
From a technical prospective the outlook for the gold price is deteriorating, with investors concerned the price could break below key resistance levels. Increased physical demand has not halted the price declining. As prices decline retail demand for bars and coins tends to rise which eventually supports the price.
Investors also reduced their holding in the SPDR Gold Trust, world’s largest gold backed exchange traded fund.
Gold is currently trading at £735.11 per ounce, whilst silver has broken below £10 per ounce for the first time in 3 weeks.