Gold Falls as U.S. Economic Data Fuels Bets on Fed Rate Increase
- Investor attention returns to when Fed will raise rates
- Platinum futures touch the lowest level since late 2008
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Gold fell to near a five-year low as stronger-than-expected U.S. economic data boosted speculation that the Federal Reserve will raise interest rates before the end of this year, damping the metal’s appeal as a store of value.
Orders for business equipment in the U.S. climbed more than economists forecast in October, indicating steady domestic demand, and jobless claims dropped to the lowest in a month. The data add to signs the economy may be strong enough to withstand higher rates, which damp the appeal of gold because it doesn’t pay interest, unlike competing assets.