Gold prices slumped Monday, approaching their lowest trading level since February, as prospects for a rate increase later in the month by the Federal Reserve and the possibility that monetary policy might tighten at an accelerated pace in 2017 weighed on the metal. The decline in gold came despite concerns sparked by Italy’s referendum result, which would typically result in haven demand for the asset and other precious metals. On Sunday, Italian voters rejected constitutional reform, leading Prime Minister Matteo Renzi to announce he will resign. Safety plays such as gold often get a lift from political uncertainty, but there wasn’t much of that early Monday, perhaps because the “no” vote had been expected to win in Italy. “Gold profited only briefly at the start of the week from the result of the constitutional referendum in Italy,” said Commerzbank analysts led by Carsten Fritsch in a note. But comments from a Fed member on Monday may be the biggest driver for gold moves
http://www.marketwatch.com/story/gold-drops-failing-to-get-a-lasting-lift-from-italian-uncertainty-2016-12-05
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