Gold prices were seen extending losses on Thursday, falling below $1,200 an ounce after the Federal Reserve (Fed) released minutes from its October meeting which showed that US interest rate will rise some time in 2015. The US dollar was boosted by the minutes, trading near a five-year high.
“Gold fell modestly, triggered by opinion poll results on the Swiss referendum. The polls suggest voters are likely to reject an increase in Swiss gold reserves,” ANZ analysts wrote in a note.
Gold for December delivery slid 0.9% to $1,183.70 an ounce on the Comex in New York. A government data released showed that money managers boosted wagers on lower gold prices to a four-week high.
Silver futures for immediate delivery were seen trading flat at $16.1381 an ounce, while platinum gained 0.4% to $1,193.50 an ounce and palladium rose 0.2% to $765.65 an ounce.
The dollar spot index, which measures the strength of the greenback against a basket of major indices, rose 0.09% to 87.7230.
Free Reports:
Assets in the world’s largest gold-backed traded-fund, SPDR Gold Trust dropped to 720.91 tons on Wednesday, the lowest since September 2008.
The Federal Open Market Committee’s (FOMC) October meeting minutes which showed some Fed policymakers supported keeping the federal funds rate low, despite the low inflation and employment reports.
Meanwhile in Switzerland, 47% voters are against a measure requiring the Swiss National Bank (SNB) to hold 20% of its gold reserves, according to a poll from Swiss TV (SRF).
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