| Gold bulls found last week that what the Federal Reserve gives, the Federal Reserve can take away. Money managers increased net-long positions in the metal by the most since last month, after the central bank’s decision on Sept. 17 to hold U.S. interest rates at record lows. A week later, Fed Chair Janet Yellen said policy makers are still on track to boost borrowing costs this year.
Gold futures, stuck near a five-year low, fell the most in two weeks on Friday as Yellen’s comments and a report showing faster-than-estimated U.S. growth boosted prospects for the bank’s first monetary tightening since 2006. Higher rates dim the appeal of the metal because it doesn’t pay interest. Citigroup Inc. said further gold weakness was “delayed rather than avoided” by the Fed’s September decision, especially with a strong dollar eroding the value of holding bullion...............................................Full Article: Source
|