US Edition 
Gold price falls again to new five-year low
Investors continue to shun metal as a safe haven as the dollar strengthens
Gold extended its drop to a five-year low on Friday and headed for the longest run of weekly loses since 2012 as Macquarie Group Ltd said the metal had little appeal as a commodity or alternative to currencies.
The 4.5pc slide this week would be the fifth straight drop and the most since October. Investors are dumping gold on expectations that the Federal Reserve will soon raise interest rates amid a strengthening economy.
Reports on Thursday showed an index of US leading economic indicators rose more than forecast in June as jobless claims fell to a four-decade low.
“Gold has always had a dual nature as a currency and a commodity,” Macquarie analysts including London-based Matthew Turner said in a report on Friday. “At present it is not desired in either form. The Fed remains on course to raise rates, while physical markets are lacklustre.”
Higher borrowing costs curb the appeal of gold, which does not pay interest or give returns like other assets including equities, and economists are projecting a 50pc chance of a rate increase in September. Gold’s plunge means six of the world’s 18 biggest miners of the metal are loss-making at current prices, according to Bloomberg Intelligence.
Gold for immediate delivery fell 0.7pc to $1,083.33 an ounce by 10:27am in London, according to Bloomberg generic pricing. Prices reached $1,077.40, the lowest since February 2010. Futures for August delivery were 1.1pc lower at $1,082.10 on the Comex in New York, where trading volume was double the 100-day average for the time of day.
Lower forecast
As the dollar’s strength has advanced almost 20pc over the past year, demand for gold as an alternative investment has fallen.
Macquarie cut its 2016 average gold forecast by 15pc to $1,163.
Investors are selling the metal from gold-backed funds at the fastest pace in four months. Holdings in the products declined by 17.6 metric tons this week to the lowest since 2009, data compiled by Bloomberg showed.
The price slump is hurting mining companies contending with higher production costs. Harmony Gold Mining Co, Golden Star Resources Ltd, DRDGold Ltd, Gold Fields Ltd, Acacia Mining Plc and IAMGold Corp had all-in costs of more than $1,100 per ounce of gold mined in the first quarter, Bloomberg Intelligence data showed.
Silver for immediate delivery lost 0.4pc to $14.6045 an ounce after touching the lowest this year, and is also set for a fifth weekly loss. Palladium rose 1.1pc to $625 an ounce, while platinum was little changed at $977.30 an ounce.