The Globe and Mail reports in its Thursday, July 23, edition that gold futures retreated for a 10th
day in the longest run of losses
since 1996 as Goldman Sachs
predicted further
declines and investors sold more
through funds. A Bloomberg dispatch to The Globe reports the metal
dropped 6.2 per cent over 10 days
of losses. Prices reached a five-year
low of $1,080 an
ounce on Monday, and holdings
in exchange traded products are
the smallest since 2009.
Bullion has fallen out of favour
with investors as the Federal Reserve
prepares to raise interest
rates, boosting the dollar and
hurting gold's allure. Prices could
fall below $1,000 for the first
time since 2009, says
Goldman head
of commodities research Jeffrey Currie. ABN Amro Bank's Georgette Boele and Robin
Bhar of Societe Generale are
also bearish.
"It looks like the bear case is
gaining more momentum," says RJO Futures analyst
Phil Streible. He says, "People who are bullish on gold are most likely not going to risk more losses" if prices fall below $1,080. Fed Chairman Janet Yellen said last week she expects officials to raise borrowing costs this year. There is a more than 50-50 chance the Fed will increase them in September.
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