20th July 2015
Gold slumped to its lowest in over five years on Monday as bets the Federal Reserve will hike rates this year led investors to sell the metal.
Prices slid by as much as five per cent overnight in Asian trade as the US dollar rose in anticipation of the US central bank increasing the cost of borrowing at some point in 2015.
Platinum fell by five per cent to its weakest since 2009, while copper and other precious metals were hit.
Meanwhile the dollar index rose to its best level since April and is close to a 12-year peak.
The New Zealand and Australian dollars were among the biggest losers to the buck’s rise as commodity currencies took a beating, while the euro, yen and sterling were all lower.
Gold’s fall comes despite figures showing China’s reserves of the metal have risen 57 per cent in the last six years.
Shares in Australian gold mining were hit hard, with Evolution Mining, Regis Resources, Northern Star Resources and Newcrest Mining among the biggest fallers.
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