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Alternative Market Briefing

Hedge funds planning to sell 430 tonnes of gold

Wednesday, November 04, 2015

Komfie Manalo, Opalesque Asia:

Hedge funds are ready to dump 430 tonnes of gold, should US employment data, to be released on Friday, be positive.

A report by Mining.com reported that gold futures with December delivery dates dropped by more than $20 an ounce on Tuesday on the Comex Market in New York.

The price of the yellow metal settled at $1,114.10 per troy ounce, after shedding nearly $70 an ounce or 6% from where it trading just before the Federal Reserve announced last week it would maintain its interest rate.

Friday’s employment figures announcement may affect the interest rate, which has been near zero since December 2008. A positive jobs number increase may lead to a rise in interest rate. And a hike in interest rates would boost the value of the dollar and reduce the value of gold, as the metal is not yield-producing.

"If we get 175,000 or 180,000 (new jobs) and wages up three tenths of a percent, that significantly increases the probability that the Fed will raise rates in December," Mickey Levy, an analyst at Berenberg in New York, told Reuters .

A stronger dollar added to the pressure on gold on Tuesday. The Wall Street ......................

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