Gold dropped for a fifth day, its longest losing run since February, after the Federal Reserve paused interest-rate increases but signaled it wasn't done with monetary tightening just yet.
The prospect of more rate rises, generally negative for the precious metal as it doesn't offer interest, saw gold break below the $1,940 to $1,980 an ounce trading range that it's been in this month. The metal is now on track for its lowest close in three months.
On Wednesday, short-term Treasury yields rose after the Fed projected more hikes than the market anticipated. That saw bullion pare earlier gains. Gold's attraction as a haven has also been dimmed by the resolution of potential macroeconomic crises such as the US debt-default saga and possible contagion in the banking sector.
Spot gold declined 0.5% to $1,932.23 an ounce by 1:10 p.m. in Singapore, and has fallen about 1.7% in five trading sessions. The Bloomberg Dollar Spot Index edged up 0.3% after dropping 0.5% in the prior two sessions. Silver, platinum and palladium all declined.
Source : Bloomberg
