Gold on track for biggest annual loss in 30 years

The dollar was also on track to end 2013 modestly higher against a basket of main currencies.

Written by Reuters | London | Published:January 1, 2014 10:47 pm

Gold was steady in thin year-end trade on Tuesday on course for its biggest annual decline in 32 years as prospects for global economic recovery prompted investors to switch to riskier assets.

After a 12-year bull run gold has shed around 28 per cent in 2013,with the US Federal Reserve’s plan to step away from ultra-loose monetary policy undermining the investor case for holding bullion.

Years of accommodative monetary policies had propelled the price of gold to all-time highs of $1,920.30 an ounce in September 2011,as low interest rates encouraged investors to put money into non-interest-bearing assets.

Spot gold was up 0.6 per cent to $1,202.30 an ounce at 1046 GMT,while US gold futures for February delivery fell 0.2 per cent to $1,201.90 an ounce.

In wider markets,world stocks were ending 2013 close to six-year peaks and benchmark bond yields were poised for their first annual rise since 2009 as investors celebrated a pick-up in global growth with expectations of more to come.

The dollar was also on track to end 2013 modestly higher against a basket of main currencies.

Gold was also set to post hefty annual losses in other currencies,with prices in euros down 31 per cent on the year,the first fall since 2004. Prices fell 30 per cent in Swiss francs and 29 per cent in British pounds.

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