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Gold falls for 10th straight day to trade at $1,090

Published 22/07/2015, 10:15
Gold breaks below $1,100 as bearish sentiment remains intact
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Investing.com - Gold prices declined for the tenth consecutive session on Wednesday, amid expectations the Federal Reserve will hike interest rates at its September policy meeting.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell to an intraday low of $1,090 a troy ounce before trading at $1,092.50 during European morning hours, down $11.00, or 1.0%.

A day earlier, gold lost $3.30, or 0.3%, to close at $1,103.50. Prices of the precious metal plunged to a five-year low of $1,080.00 on Monday.

Gold prices have been under heavy selling pressure in recent weeks amid speculation the Fed will raise interest rates for the first time in eight years as early as September.

Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.

Also on the Comex, silver futures for September delivery slumped 7.8 cents, or 0.53%, to trade at $14.70 a troy ounce, while copper for September delivery dropped 4.1 cents, or 1.64%, to trade at $2.434 a pound.

The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 97.44, not far from Tuesday's three-month high of 98.30.

The greenback remained in demand amid rising bets that a rate hike is coming in September.

A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.

Meanwhile, the Greek parliament was set to vote later Wednesday on a second set of reforms needed to secure the country's bailout deal.

If lawmakers approve the financial and judicial reforms, Greece will be able to press ahead with negotiations for an €86 billion bailout from its creditors.

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