Gold led the rout of commodities as investors unwound their positions, accumulated before the US Federal Reserve announcement to end quantitative easing. Gold, silver and platinum tumbled as the dollar’s rise to a five-year high cut demand, wiping almost $2 billion (1122.1bn) from the value of precious metals-backed funds. The commodity prices declined as the Republicans soared to victory on Tuesday in US mid-term elections to win both US Houses of Congress and Bank of Japan governor Haruhiko Kuroda said he saw no limit to the steps the central bank might take to defeat deflation. Gold, which is perceived to be a hedge for investors, dropped to a four-year low as bullion for immediate delivery slid 2.3 percent to $1 141 an ounce in London. Jihad Jhaveri comments on what gold producers can do to deal with the volatility of the gold sector.
view article