Gold Lower as Stocks and Yields Rise

December 5, 2016 Share Print 0

Gold fell to its lowest in 10 months on Monday as global equities strengthened as investors shrugged off worries of political instability in Italy, while U.S. Treasury yields rose after U.S. economic data.

Italian Prime Minister Matteo Renzi said he would resign after suffering a crushing defeat on Sunday in a referendum on constitutional reform, raising concerns of early elections in 2017.

Spot gold fell by as much as 1.6 percent to its lowest since February at $1,157 an ounce and was down 1.5 percent at $1,159.61 by 1525 GMT. U.S. gold futures shed $17 to $1,160.80.

The benchmark 10-year U.S. Treasury yield rose, as the Institute for Supply Management said the pace of growth among domestic services industries accelerated more than forecast in November.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.