Gold fell for an eighth straight session on Monday to its weakest level in over a month, as fears that the US Federal Reserve may wind back its economic stimulus programme hurt the metal's appeal as a hedge against inflation.
Investors have been dumping gold, which is down 20 percent so far this year, as stocks and the dollar continue to outperform. If gold closes in the red on Monday, it would match the metal's longest losing streak since March 2009.
"Investors are very bearish at the moment," said Yuichi Ikemizu, branch manager for Standard Bank in Tokyo. "The stock market and the dollar are quite strong. It's a natural move for investors to switch their money from commodities to equities."
Data showed Americans felt better about their economic and financial prospects in early May, with consumer sentiment at its highest in nearly six years, while a gauge of future economic activity rose in April to a near five-year high.
Spot gold hit a session low of USD 1,338.95 an ounce, its lowest since touching a two-year trough of USD 1,321.35 during the April 16 sell-off that was prompted by worries that European countries could liquidate gold reserves.
Read more: http://www.valuenotes.com/xchange/blogs/3618/4069
mcx free tips | best commodity tips free trial
Reply With Quote
