Gold declined on speculation a 2.3 percent advance in the past two days may damp demand as holdings in the biggest bullion-backed exchange-traded product extended losses. Silver fell.
Spot gold lost as much as 0.4 percent to $1,246.76 an ounce, and traded at $1,248.41 by 8:58 a.m. in Singapore, snapping two days of gains. Assets in the SPDR Gold Trust fell to 939.75 metric tons yesterday, the least since February 2009, data on the SPDR website showed.
Gold has dropped 8.7 percent since Federal Reserve Chairman Ben S. Bernanke told reporters after the Federal Open Market Committee’s June 18-19 meeting that the central bank may reduce its $85 billion of monthly asset purchases this year and end the program in 2014 as the economy improves. Minutes of that meeting will be released today and Bernanke will speak at a National Bureau of Economic Research conference.
“The gold rally may run into greater selling if the U.S. dollar remains firm despite the uptick in emerging-market demand,” Howard Wen, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Rallies tend to be met with investor liquidation, notably gold-exchange traded fund liquidation.”
Bullion for August delivery traded at $1,246.20 an ounce on the Comex in New York from $1,245.90 yesterday when it rose 0.9 percent as accelerating inflation in China boosted the metal’s appeal as a hedge, while demand rose for jewelry, coins and bars.
The Dollar Index, which measures the greenback against the currencies of six major U.S. trade partners, added 0.1 percent, extending yesterday’s advance to a three-year high.
Silver for immediate delivery fell 0.2 percent to $19.283 an ounce, dropping for the first time in three days. Spot platinum was little changed at $1,366.95 an ounce, while palladium was little changed at $699.70 an ounce.
courtesy of bloomberg.com
Spot gold lost as much as 0.4 percent to $1,246.76 an ounce, and traded at $1,248.41 by 8:58 a.m. in Singapore, snapping two days of gains. Assets in the SPDR Gold Trust fell to 939.75 metric tons yesterday, the least since February 2009, data on the SPDR website showed.
Gold has dropped 8.7 percent since Federal Reserve Chairman Ben S. Bernanke told reporters after the Federal Open Market Committee’s June 18-19 meeting that the central bank may reduce its $85 billion of monthly asset purchases this year and end the program in 2014 as the economy improves. Minutes of that meeting will be released today and Bernanke will speak at a National Bureau of Economic Research conference.
“The gold rally may run into greater selling if the U.S. dollar remains firm despite the uptick in emerging-market demand,” Howard Wen, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Rallies tend to be met with investor liquidation, notably gold-exchange traded fund liquidation.”
Bullion for August delivery traded at $1,246.20 an ounce on the Comex in New York from $1,245.90 yesterday when it rose 0.9 percent as accelerating inflation in China boosted the metal’s appeal as a hedge, while demand rose for jewelry, coins and bars.
The Dollar Index, which measures the greenback against the currencies of six major U.S. trade partners, added 0.1 percent, extending yesterday’s advance to a three-year high.
Silver for immediate delivery fell 0.2 percent to $19.283 an ounce, dropping for the first time in three days. Spot platinum was little changed at $1,366.95 an ounce, while palladium was little changed at $699.70 an ounce.
courtesy of bloomberg.com
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