MY: Gold holds near one-week high as US rate rise priced in
Gold, on Monday, held near a one-week high on speculation that investors have factored in a US interest-rate increase, which may happen as early as next month. Gold added 0.1 percent to USD 1,095.40 an ounce. It reached USD 1,099.63 on Friday, the highest since July 31. Silver also gained 0.7 percent to USD 14.93 an ounce. While gold dropped the past seven weeks in the longest run of losses in 11 years, prices rose on Friday even as data showed an improving US jobs market and backed the case for higher rates. Gold reached a five-year low last month and investors are holding the least through bullion-backed funds since 2009 as prospects for higher borrowing costs helped strengthen the dollar. Rate increases reduce the metalÂ’s allure because it doesnÂ’t pay interest or give returns like other assets such as equities and bonds.
