Gold price drops for fourth straight session as Fed rate hike now seen likely

San Francisco (Nov 2)  Gold prices dipped for fourth straight session on Monday, as investors awaited U.S. manufacturing data amid increasing concerns that the Federal Reserve will raise interest rates next month.

Gold for immediate delivery was trading at a three-week low of f $1,137.8 an ounce in London mid-morning, down 0.36% from its opening price of $1,141.59 per once. On the Comex in New York, bullion prices opened slightly below $1,138 per ounce, sliding down to $1,133.9 at 10:30 ET.

Until recently, investor agreed that the likelihood of a rate rise this year was low. But the Fed’s comments last week made many to change their minds, sending gold prices to a four-week low, the biggest drop since August.

This week, investors will be have their eyes on US monthly non-farm payrolls data, to be released Friday and US Fed Chair Janet Yellen testimony before the US House Financial Services Committee Tuesday.

Source: Mining.com