Gold fell for a second day in London as prices near a record high in India, the world’s largest buyer, may curb new purchases.
The rupee price of gold climbed for a third day, and is less than 1 percent below the record on June 8. India’s economy expanded at the fastest pace in 2-1/2 years, increasing pressure on the central bank to raise interest rates to cool inflation.
The market is “quiet with gold in rupees close to all-time highs,” said Tom Kendall, an analyst at Credit Suisse Group AG in London.
Gold for immediate delivery dropped $2, or 0.2 percent, to $1,234.97 an ounce at 10:22 a.m. in London. Prices have climbed 4.6 percent this month, heading for the biggest monthly gain since April.
Gold for delivery in December declined 0.2 percent to $1,236.50 an ounce on the Comex in New York.
Silver dropped 0.7 percent to $18.94 an ounce, platinum declined 0.9 percent to $1,514.25 an ounce and palladium fell 1.6 percent to $488.88 an ounce.