Gold Drops as Fifth Weekly Advance Spurs Sales; Silver Declines
Gold declined after a rally to the highest price in more than six months and best run of weekly gains in more than a year prompted some investors to sell the metal. Silver, platinum and palladium dropped.
Spot gold fell as much as 0.9 percent to $1,757.70 an ounce and was at $1,762.85 at 12:10 p.m. in Singapore. The price touched $1,787.52 on Sept. 21, the costliest since the year’s high of $1,790.75 on Feb. 29. Last week’s 0.2 percent rise was the fifth weekly climb, the best advance since August 2011.
Gold advanced 11 percent this quarter to last week’s close after the U.S. Federal Reserve announced on Sept. 13 a third round of debt-buying to bolster the economy, boosting concern the dollar may weaken while inflation accelerates. The European Central Bank said on Sept. 6 it planned a bond-purchase program to fight the debt crisis, while the Bank of Japan boosted stimulus and China approved additional infrastructure spending.
“Double-digit gains for the quarter are going to be attractive for people to book their gains,” said Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd. “With prices up near the highs for the year on Sept. 21, and the market seemingly not able to push through $1,800, it’s fair to say some people are cashing in.”
December-delivery bullion fell as much as 1.1 percent to $1,759.20 an ounce on the Comex, and traded at $1,765.20. Holdings in gold-backed exchange-traded products climbed 0.5 percent to a record 2,535.55 metric tons on Sept. 21, according to data tracked by Bloomberg. ETP assets have risen for 14 straight sessions. The Dollar Index gained 0.3 percent today.
Silver dropped as much as 2 percent to $33.8462 an ounce, the lowest level since Sept. 17, and traded at $34.015. Platinum declined as much as much as 1.6 percent to $1,610 an ounce, and was at $1,620. Palladium fell as much as 2.1 percent to $658 an ounce and traded at $661.50.
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