Gold sinks to lowest in 15 months on robust US data

Gold sinks to lowest in 15 months on robust US data

Gold sinks to lowest in 15 months on robust US data

Written by Bella Dalima

06 Oct, 2014 | 4:07 pm

Gold tumbled to its lowest level in around 15 months on Monday after better-than-expected US jobs data boosted the dollar, dampening safe-haven appetite for bullion and pushing silver and platinum to multi-year lows.

Gold, which often influences other precious metals, has also failed to capitalize on geopolitical tensions caused by military conflict between Russia and Ukraine and the rise of Islamic State in Iraq and Syria.

Cash gold had fallen 0.20 per cent to $1,188.37 an ounce by 0325 GMT. It earlier dropped to $1,183.46 an ounce, its weakest since June 2013.

Platinum touched its lowest since 2009, silver fell to its weakest since 2010, and palladium hit an 8-month low.

Premiums for gold were quoted at $1.20 to $1.60 an ounce to the spot London prices, unchanged from last week, despite a sharp drop in cash gold prices.

The absence of main gold consumer China is weighing on the physical market, which usually sees a pick up in demand from jewellers and retail investors when prices fall.

Chinese markets have been shut for national holidays and will reopen on Wednesday.

US gold was at $1,189.00 an ounce, down 0.33 per cent.

In Tokyo, sellers pushed up premiums for gold bars to 25 cents to spot London prices from zero last week to offset the decline in global prices.
Markets in Singapore, a key bullion trading centre in Southeast Asia, were also closed for a public holiday.

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