Gold futures closed lower Wednesday as lingering worries about higher interest rates in the US overshadowed support from ongoing geopolitical tensions.
Gold for December delivery, the most active contract, fell $US1.80, or 0.1 per cent, to settle at $US1,283.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold has retreated from highs set in July, as a renewed focus on the path of US monetary policy uncovered a budding expectation for higher interest rates among gold traders.
Gold doesn’t pay interest or dividends and could struggle to compete with Treasury bonds when rates climb.
“The US interest rate story is what’s really going to move gold over the next five years,” said John Payne, a senior market analyst with Daniels Trading in Chicago.
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