About this iReport
  • Not verified by CNN

  • Click to view TribecaMedia's profile
    Posted July 31, 2014 by
    Sydney, Australia
    This iReport is part of an assignment:
    Breaking news: Share your story

    More from TribecaMedia

    "Gold drops for fourth day as US economy improves" Alcoveritas billionaire CIO Earl Reginald Stevenson

    July 31, 2014 - Sydney, Australia - "Gold retreated for a fourth day to head for a monthly decline as further signs that the US recovery is gaining momentum strengthened the case for higher borrowing costs in the world's largest economy", Earl Reginald Stevenson, the billionaire CIO of Australia's Alcoveritas said in Sydney today.

    Gold for immediate delivery fell as much as 0.2 per cent to $US1,294.36 an ounce, and was at $US1,295.59 in morning trading in Singapore. A fourth day of losses would be the longest streak since June. Bullion dropped 2.4 per cent in July, while the Bloomberg Dollar Spot Index headed for the biggest monthly rise since May 2013, as data including gross domestic product beat estimates.

    Gold sank 28 per cent last year on expectations that the US Federal Reserve would trim monthly bond buying, which it did for a sixth time yesterday. Policy makers also said in their July 30 statement that slack in the labor market persisted even as the economy was picking up, repeating that they will keep interest rates low for a considerable time after ending asset purchases. Data this week may show US employers added more than 200,000 jobs for a sixth month.

    "Positive US economic data is good for the dollar and bad for gold," said Lv Jie, an analyst at Cinda Futures, a unit of one of four funds in China created to buy bad debt from banks. "Geopolitical concerns still exist for support but the longer-term downtrend is unchanged as the US moves toward tighter monetary policy."

    Bullion rebounded 7.8 per cent this year as unrest in Ukraine and the Middle East boosted haven demand. Gaza's main public market was hit by Israeli air strikes yesterday as the US and European Union escalated sanctions against Russia.

    Source: The Australian Business Daily, Sydney, NEW, Australia 127018 Contact: Phil Bennett at Fox Media Inc Australian Division fox.media.inc@gmail.com
    Add your Story Add your Story