Gold futures dropped after an agreement with Iran was reached to ease sanctions in return for concessions over the country’s nuclear program.
Gold Futures for December delivery dropped 1.10% to $1,230.50 an ounce on New York’s Comex at the time of writing, while Silver futures declined 1.17% to $19.630 at the same time,
Five permanent Security Council members, Britain, France, US, China, Russia and Germany concluded an agreement with Iran over the weekend to ease the extensive nuclear program in the country in return of an estimated $7 billion-worth of sanctions.
However, the deal doesn’t imply a direct removal of sanctions. Iran will get access to $4.2 billion in foreign exchange as part of the deal, a western diplomat confirmed to the press.
Market participants continue to remain hopeful that the Western powers can finalize a broader agreement on the nuclear-programs talks in the future.
The yellow metal recorded its worst weekly performance since September over the last week, following the release of the Federal Open Market Committee (FOMC) minutes which revealed that the Federal Reserve could begin to taper its monthly asset purchases as early as December. The Federal Open Market Committee minutes from the October meeting weighed on the precious metal prices.
Gold prices dropped 26% lower this year on fears that the Federal Reserve would begin to taper soon and is likely to record its first annual drop in 12 years.
Last week, Hedge-fund Manager John Paulson, said he personally wouldn’t invest more money into his gold fund due to the inflation possibly accelerating.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 852.21 tones on Friday, dropping to its lowest level since February 2009.
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