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.
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