Gold ETP Sales in Longest Run Since March as Rate Increase Looms
- Gold-backed fund holdings at lowest in more than six years
- Bets have increased that Fed will raise rates next week
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Gold sales from bullion-backed funds stretched into the longest run in eight months as bets that the Federal Reserve will raise interest rates next week cut the appeal of owning the metal.
Holdings in exchange-traded products fell for a 13th day, remaining at the lowest since February 2009, data compiled by Bloomberg show. Atlanta Fed President Dennis Lockhart said Monday that conditions are very satisfactory for a rate increase, which cuts the appeal of gold because it doesn’t pay interest or give returns like some other assets.