(Reuters) Nov 18: Gold prices eased on Monday as a retreat in other commodities and lackluster physical demand provoked traders to lock in three days’ worth of gains, granting forecasts that U.S. monetary policy would remain moveable for the time being loaned support.
Last week on Thursday Assumption that incoming Federal Reserve chief Janet Yellen would preserve the Fed’s easy monetary policy helped boost gold after she toughly defended the bank’s bold steps to spur economic growth.
Ultra-loose monetary policy, which profits gold by keeping interest rates low while stoking expectations of increasing increase, has been a chief driver of higher gold prices in current years. They have dropped 23 % this year on the assumption it is set to end.
At 1007, GMT, Spot gold was down 0.3 percent at $1,285.45 an ounce. On Thursday, the metal ascended further than $20 an ounce in the past 3days of last week after drumming a one-month low at $1,260.89.
Futures for December U.S. gold deliveries were down $2.40 an ounce at $1,285.00.
Simon Weeks, head of precious metals at, Scotia Mocatta, said: “There isn’t a lot of additional money coming in, and Chinese premiums are somewhat unsatisfactory for the period of the year. And nowadays everything’s in the red, so gold’s just following suit,”But generally this is a sideways environment.”
He also stated “If we do have proof that the green shoots of U.S. economic recovery are revolving into something more expressive, obviously it will have an undesirable impact on gold, but it seems those prospects are being pushed out further again,”. “Correspondingly, I don’t think there’s enough pessimism coming back in again to push us back into bull mode. So we’re just in a sideways corridor.”
On Monday, European stocks were flat while copper declined and benchmark Brent crude oil futures by 0.4 percent and 0.2 percent correspondingly.
Furthermore, the dollar index has fallen to 0.2 percent.