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The Federal Reserve announced an increase in the interest rates this month as Gold prices lower to 8 percent last November due to the rising dollar and Treasury yields. The decrease is the lowest since February and it extends as the biggest monthly decline since 2013.

Gold is trading at $1, 169.65 a troy ounce today; it is the lowest since February 5 this year which was at $1, 163.5. As the dollar edges up and the positive growth of crude after the OPEC drags gold rock bottom forcing higher interest rates this coming month just before the year ends. Gold becomes less attractive to holders of other currencies as dollar inches higher recently.

The sudden rise in the dollar was after Wednesday’s meeting of the Organization of the Petroleum Exporting Countries of OPEC. The highlight of the gathering is the agreement on an oil output cut aimed at reining global oversupply and shoring up prices.

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Gold Lowers as Treasury Yields Rises

According to Ross Norman of Sharps Pixley, that gold needs to get through a tougher period and a bit more of adjusting due to the inconsistent and unreliable price rally, before establishing a solid foundation for a further move higher next year.

Recent reports revealed that the 97.8 percent of traders expect the Fed to raise interest rates at its December meeting. Higher rates mean a support for the dollar by making the currency more lucrative to yield-seeking investors.

The key motivation of a weaker gold was the joint success of dollar and the rising Treasury Yields, Carsten Menke’s analyst Julies Baer noted. Both of the Treasury yields and the dollar are really upsetting gold’s growth and outflows of around 5 million ounces since the election were seen and monitored, and these are mainly from the U.S.-listed products he added.

The surprising results of the U.S. elections that end with the Donald Trump winning are seen as the main motivator as for why U.S. bond yields have surged and with his commitment to building and renovating infrastructure leads speculations of a bigger spending that would spur growth and inflation.

Meanwhile, Germany leads euro zone government bond as it yields higher on Thursday as the first output cut by major oil produces since 2008 and an increase of 8 percent surge in oil prices boosted the expectations of a higher inflation rate.

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