Everything’s against gold at the moment.
It’s heading for a fifth consecutive weekly loss, the longest run since November 2015, as the Federal Reserve gears up to raise rates, while US equities at record levels lure money out of havens and fund holdings wither. Assets in bullion-backed exchange-traded funds contracted for a 20th straight day as of Thursday, the longest stretch since May 2013.
The precious metal is ending 2016 on the ropes as investors price in the Fed’s probable move next week, as well as the likelihood of further hikes in 2017, which has boosted the dollar.
The S&P 500 and the Dow Jones Industrial Average are at all-time highs amid speculation President-elect Donald Trump’s policies will spur growth. Investors are also assessing the European Central Bank’s decision on Thursday to tweak its bond buying.
“Gold’s getting hit from all directions,” said Tom Kendall, head of precious metals strategy at ICBC Standard Bank Plc in London. “We have very week physical markets, we’ve had this surge in bond yields and equities, ETF outflows and talk of Trump’s fiscal stimulus, all of which conspired to push down prices.”
