| Gold prices plummeted again this week, closing at $1133.6/ounce, down 2.3 per cent. Data on Thursday showed that the US recorded a robust 3.7 per cent growth in GDP in the second quarter, higher than the estimate of 2.3 per cent. Silver and platinum too closed in the red at $14.5/ounce and $1,018/ounce respectively.
Strong US data has revived expectations among investors that the Federal Reserve may ignore problems in China and go ahead with a rate hike at its upcoming meeting in September. Given that gold is a non-interest bearing asset, the belief is that it will lose out in a rising rate environment, the reason why the metal was beaten down last week. BusinessLine evaluated the behaviour of gold prices after previous Fed rate hikes to find out if it works in practice...............................................Full Article: Source
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