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Gold at five-year low after sixth straight weekly fall

It comes as precious metals funds posted their biggest net outflow last week in around four months.

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Gold was trading US$12 lower, around 1.2% to US$1,057.

Gold was set for its sixth weekly fall as the metal slumped to its lowest level for more than five years.

It comes as precious metals funds posted their biggest net outflow last week in around four months.

Investors kept up the rapid pace of inflows into money market funds, according to Bank of America Merrill Lynch.

Around US$1.0bn was pulled out of precious metals funds in the four days to Tuesday, as the dollar rose to its strongest level in seven months.

FXTM Research Analyst Lukman Otunuga said: “November’s string of robust economic data from the United States has reinforced the firm expectations around the possibility of a US interest rate hike in December and this has acted as encouragement for sellers to consistently attack this yellow metal.”

Gold remains dependent on the US interest rate expectations and further dollar appreciation could cause prices to decline towards US$1050 and possibly lower, he added.

Gold was trading US$12 lower, around 1.2% to US$1,057.

Elsewhere, silver eased 1.1% to US$14.12 while platinum lost US$16, almost 2%, to US$835.

 

Major Movers

Randgold Resources down 182p to 3,994p

Fresnillo down 35p to 714p

Anglo American down 36p to 396p

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