(Bloomberg) -- Gold fell to a 12-week low in New
York on speculation that higher global interest rates will
reduce demand for the precious metal as an alternative
investment. Silver tumbled the most in three months.
Traders assign a 44 percent chance that the U.S. Federal
Reserve will raise rates 25 basis points by December as of
yesterday, compared with zero chance a month ago, according to
options on Fed funds futures. Gold fell 3.9 percent this week
after the Reserve Bank of New Zealand and the European Central
Bank raised rates. Holding gold becomes less attractive when
interest rates rise because the metal has no fixed returns.
Read more at Bloomberg Commodities News
York on speculation that higher global interest rates will
reduce demand for the precious metal as an alternative
investment. Silver tumbled the most in three months.
Traders assign a 44 percent chance that the U.S. Federal
Reserve will raise rates 25 basis points by December as of
yesterday, compared with zero chance a month ago, according to
options on Fed funds futures. Gold fell 3.9 percent this week
after the Reserve Bank of New Zealand and the European Central
Bank raised rates. Holding gold becomes less attractive when
interest rates rise because the metal has no fixed returns.
Read more at Bloomberg Commodities News
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