Gold fell close to an earlier multi-year low yesterday, as the market awaited minutes of a recent Federal Reserve meeting which could reinforce bets of a rate hike next month. Gold futures went up 9.20 dollars or 0.86 percent to close at USD 1,078.00 per troy ounce at the COMEX division of the NY Mercantile Exchange. Fed officials on Wednesday continued to flag December as a likely time for U.S. interest rates to rise after seven years near zero, but the central bank signalled an intention proceed slowly and steadily after that. The price of gold slumped in Asian trading hours to $1,063.55 per ounce, forging the lowest level since February 2010. Expectations for gradual tightening will cushion the fall, with prices then returning to trade at about 1,000 and above, said John Davies, global head of commodities research. The Dollar meantime pushed the single Euro currency down today to its lowest level since mid-April - the height of the latest Greek debt crisis - at $1.0670. "The direction of gold continues to be dictated by United States interest rate expectations and dollar appreciation has attributed to the factors repelling investors from this metal". Goldman forecast gold at $1,050 in six months and $1,000 in a year as rates climb, according to an Oct 21 report. A few traders said that a bounce in gold and the weakness in the dollar are a function of both of those assets being aggressively traded by investors ahead of a rate increase. Prospects are mounting that the Fed could lift USA interest rates next month for the first time in nearly a decade. Gold and [the USA dollar] have been more aggressively pricing in a rate hike than other markets so I think we are getting common enter trade on rumor exit on the news type of response, said Cieszynski. Silver was up 1.1 percent at $14.32 an ounce, while platinum was up 0.6 percent at $850.85 an ounce and palladium was up 0.5 percent at $536.25 an ounce. Platinum is recovering after hitting its lowest since December 2008 on Wednesday, at $840.40 an ounce. Steelers Lounge http://steelerslounge.com/2015/11/gold-climbs-off-five-year-trough-as-dollar-pulls-back/57424/

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