Gold and silver futures fell for the first time in four sessions as speculation mounted that the Federal Reserve is moving closer to boosting U.S. interest rates for the first time since 2006.
Holdings in the SPDR Gold Trust, the world’s largest exchange-traded fund backed by the metal, dropped yesterday to the lowest since September 2008. Minutes from the Fed’s latest meeting will be released today.
Gold dropped 10 percent in the second half of 2014 as inflation remained muted and the dollar surged after the economy expanded in the U.S. Companies added 241,000 jobs in December, topping estimates by analysts, ADP Research Institute data showed today.
“The ADP number is another indication that the economy is growing,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “The market is nervous ahead of the Fed minutes, and the text will indicate how hawkish the Fed members are.”
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.