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Gold struggles near 3-month low on Fed rate hike fears

Posted: Tue Sep 09, 2014 11:27 pm
by Jhon Kumar
Gold was steady near $1,255 an ounce on Wednesday, holding close to a three-month low, as speculation over an early U.S. interest rate hike strengthened the dollar and dulled bullion’s appeal. Spot gold was little changed at $1,256.49 an ounce by 0338 GMT. It fell to $1,247.15 on Tuesday, its lowest since June 6, before paring losses to close up 0.04 percent.

“It does look like the market thinks an early rate hike is very likely based on economic data. The immediate support for gold is at $1,240 but it could go all the way to $1,200.” Higher rates would dim the appeal of non-interest yielding assets such as bullion. Data on Tuesday showed that U.S. job openings held near a 13-year high in July while hiring picked up.