Must Listen

Must Read

What Art Thinks


Today's Headlines

Man blowing a shofar

Administrative Area

Locally Contributed...



Special Interest

Daily News
“Gold Falls As Looming U.S. Rate Hike Weighs”
by The Daily Telegraph   
August 28th, 2014

GOLD futures closed lower Wednesday as lingering worries about higher interest rates in the US overshadowed support from ongoing geopolitical tensions.

GOLD for December delivery, the most active contract, fell $US1.80, or 0.1 per cent, to settle at $US1,283.40 a troy ounce on the Comex division of the New York Mercantile Exchange.

Gold has retreated from highs set in July, as a renewed focus on the path of US monetary policy uncovered a budding expectation for higher interest rates among gold traders. Gold doesn't pay interest or dividends and could struggle to compete with Treasury bonds when rates climb. "The US interest rate story is what's really going to move gold over the next five years," said John Payne, a senior market analyst with Daniels Trading in Chicago. The US Federal Reserve is due to end its stimulus efforts this year, opening the door to a tighter policy stance. This creates a sense of uncertainty for gold traders, as the central bank has indicated its future policy decisions will hinge on the health of the US economy. Still, gold's losses were muted as ongoing tensions in eastern Europe and the Middle East continue to stoke investor appetite for the precious metal. Some traders view gold as a better store of value than bonds or equities during periods of upheaval, and flock to the metal to protect their wealth against such risks.
go back button