NEW YORK/LONDON: Gold sank almost 2 percent to two-week lows yesterday as upbeat US data heightened expectations the US Federal Reserve may soon rein in its massive stimulus program that has bolstered bullion prices.
The market had earlier surrendered gains as the dollar rose following the European Central Bank’s pledge to keep interest rates low. But selling accelerated and prices fell to $1,365.16 an ounce, the lowest since Augusr 22, after data showed the pace of growth in the US services sector accelerated in August to its fastest pace in almost eight years.
For now, safe-haven buying that had propelled prices to three-and-a-half-month highs last week due to rising tensions in the Middle East, has stalled. Building on Wednesday’s 1.5-percent drop, spot gold was down 1.6 percent at $1,368.14 an ounce at 1550 GMT. It was off a session high of $1,399.06 and close to support at $1,358 per ounce, its 100-day moving average.
Silver was down 1.37 percent at $23.12 an ounce, while spot platinum was down 0.99 percent at $1,473.45 an ounce. Spot palladium was down 1.7 percent at $683.72 an ounce. Reuters