Gold extends drop from three-week high as SPDR holdings contract
Gold fell for a second day as assets in the largest exchange-traded product backed by the metal shrank to the lowest in more than six years. Silver declined.
Bullion for immediate delivery lost as much as 0.4 percent to $1,192.95 an ounce, and traded at $1,193.79 by 11:54 a.m. in Singapore, extending yesterday’s 0.3 percent drop, according to Bloomberg generic pricing. Holdings in the SPDR Gold Trust fell yesterday for the first time in a week to 718.82 metric tons, the least since September 2008.
Gold rose on Nov. 21 to $1,207.93, the highest since Oct. 30, after China joined Japan and Europe in taking steps to spur growth by unexpectedly cutting interest rates. The metal is on course to snap two months of losses as central banks around the world ease monetary policy at a time when the Federal Reserve moves closer to raising borrowing costs.
“Gold prices have been struggling around $1,200 as investors prepare for the Thanksgiving holiday,” said Mark To, head of research at Wing Fung Financial Group, a Hong Kong-based trader and refiner. “The Swiss vote should be monitored even though the probability of ‘yes’ is low. When this supportive factor is removed, precious metals will be pressured lower as our outlook for the U.S. economic recovery remains unchanged.”
Switzerland holds a national referendum on November 30 that would require the central bank to hold at least 20 percent of its assets in gold, all of which have to be stored in the country, and never sell any. Polls last week showed a plurality of voters oppose the initiative, though a portion of them were still undecided.
Thanksgiving Holiday
Gold for February delivery slid 0.3 percent to $1,193.50 an ounce on the Comex in New York. U.S. markets are closed today for Thanksgiving.
The Bloomberg Dollar Spot Index was little changed after completing its first two-day drop this month as data yesterday showed U.S. consumer spending, equipment orders and new-home sales trailed forecasts in October, while jobless claims rose to a three-month high.
Silver for immediate delivery retreated 0.9 percent to $16.3658 an ounce after prices dropped 1 percent yesterday. Spot platinum slid 0.3 percent to $1,224.75 an ounce, halting two days of gains. Palladium fell 0.3 percent to $801.25 an ounce after completing a five-day rally yesterday, the longest since Oct. 29.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!