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
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.
Alfonso Esparza