Gold falls to five-year low as US rate hike looms

The gold price has fallen to a five-year low in anticipation of a rise in US interest rates later this year, hitting the shares of gold miners.

The price fell 4% to $1,088.05 an ounce overnight due to heavy trading in China, and analysts are forecasting potential further falls to $1,000 an ounce by the end of the year. However, the gold price has regained some ground this morning to reach a level of $1,114 an ounce, back above the $1,100 barrier. This morning saw the first time since March 2010 that gold has fallen below $1,100 as investors buy into the US dollar instead, propping up an already strong currency. The US dollar has been on an upward trajectory so far this year, as the US economy continues to recover, but its ...