Gold Headed for Poor Quarter

Gold traded near the lowest level in nine months, on course for the first quarterly loss this year, as prospects for higher U.S. borrowing costs boosted the dollar to its best quarter since the financial crisis.

Bullion for immediate delivery traded at $1,217.14 an ounce by 9:22 a.m. in Singapore from $1,215.81 yesterday, according to Bloomberg generic pricing. The metal has declined 8.3 percent since the end of June, dropping on Sept. 25 to $1,207.04, the lowest level since Jan. 2 and within 0.5 percent of erasing this year’s gains that were partly fueled by tensions in Ukraine and the Middle East.

Gold sank 28 percent in 2013 on expectations the Federal Reserve will reduce asset purchases as the economy improves. The Bloomberg Dollar Spot Index has risen 6.6 percent this quarter, the most since the three months to Sept. 2008. Fed policy makers have raised U.S. interest-rate forecasts, while central banks from Europe to Japan and China maintained or expanded monetary stimulus to spur their economies.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.