Gold sinks to five-year low in London

LONDON:The Price of Gold collapsed this week close to five-year lows, punished by mounting speculation of a US Federal Reserve rate hike later this month.Gold nosedived to $1,046.43 per ounce on Thursday, touching the lowest level since early February 2010, as the stronger dollar dented demand.Upbeat non-farm payrolls data on Friday reinforced expectations of a December 16 Fed rate increase, dealers said.”Gold has been taking a hammering on increasing expectations of a December rate rise in the United States,” Sucden analyst Kash Kamal told AFP.The US economy pumped out 211,000 new jobs in November, the Labor Department said, a solid figure that supports the Fed starting to raise rates this month.”This number just solidifies the rate hike for December and therefore gives us the down side on gold that I expect in the medium term,” said analyst James Hughes..


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