Gold drops on US stimulus worries
Singapore, November 25, 2013
Gold edged towards a four-month low on Monday on fears of an early end to US stimulus measures and as holdings in the biggest bullion-backed exchange-traded fund fell the most in three weeks.
Spot gold fell 0.3 percent to $1,239.84 an ounce by 0022 GMT, after posting its biggest weekly loss in two months. The metal wasn't too far from its four-month low of $1,236.29
hit last week.
Two Federal Reserve officials said on Friday that a debate over rolling back the bank's bond-buying stimulus was on the table at the December policy meeting, raising fears that the Fed could begin tapering from next month.
The Fed's $85 billion monthly bond purchases have boosted gold prices in recent years as they increase the metal's inflation hedge appeal.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 4.50 tonnes to 852.21 tonnes on Friday, their lowest since February 2009. It was the sharpest drop since Nov. 1. - Reuters
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