Gold Falls From 10-Month High Amid Weaker Demand in Asia
Gold futures fell from a 10-month high in New York on renewed concern that demand in Asia will remain slow. Silver also declined.
Imports of gold by India, the world’s top buyer, fell 56 percent in the second quarter, according to the World Gold Council. Standard Bank Plc said in a report today that weak bullion demand has been in place since mid-September and is the most severe in more than a year. In the three months ended Sept. 30, prices jumped 11 percent, the most since June 2010, as a third round of monetary stimulus in the U.S. revived demand for the metal as a hedge against future inflation.
“While the market has been going up on the stimulus fever, lack of support from physical demand is putting some pressure on prices,” Marc Ground, a commodity strategist at Standard Bank in Johannesburg, said in a telephone interview.
Gold futures for December delivery fell 0.4 percent to settle at $1,775.60 an ounce at 1:35 p.m. on the Comex in New York, dropping for the second time in three sessions. Yesterday, prices reached $1,794.40, the highest for a most-active contract since Nov. 14.
Silver futures for December delivery slid 0.8 percent to $34.669 an ounce in New York, after reaching $35.445 yesterday, the highest since March 2.
Holdings in silver-backed exchange-traded funds slid 122.8 metric tons yesterday to 18,503.6 tons, data compiled by Bloomberg show.
Platinum futures for January delivery rose 0.1 percent to $1,687.20 an ounce on the New York Mercantile Exchange, the sixth-straight increase.
Palladium futures for December delivery jumped 1.3 percent to $654.20 an ounce on the Nymex.
To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
Oct. 2 (Bloomberg) -- Brendan Brown, chief economist at Mitsubishi UFJ Securities, discusses Federal Reserve policy and the outlook for markets. He speaks with Tom Keene and Sara Eisen on Bloomberg Television’s “Surveillance.” (Source: Bloomberg)
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