Gold slips to 4-week low

Gold fell nearly one per cent to its lowest in almost four weeks on Thursday, shrugging off further weakness in the dollar, after the Federal Reserve signalled it was on track to raise US interest rates again in December.

The metal is highly sensitive to rising US rates, which boost the cost of holding non-yielding bullion relative to other assets, while lifting the dollar, in which it is priced.

Spot gold was down 0.7 per cent at $1,291.95 an ounce at 1355 GMT, having earlier touched its lowest since late August at $1,287.61. US gold futures for December delivery were down $21.50 an ounce at $1,294.90.

“It should be an interesting time in the run up to mid-December as we see the Fed prepare to raise rates, reduce the balance sheet at the same time as a tense negotiation over the (US) debt ceiling, plus fiscal spending plans and tax cuts are debated in Congress,” Mitsubishi analyst Jonathan Butler said.