Gold futures fell for the second straight session as the dollar’s advance curbed demand for the metal as an alternative investment.
The greenback rose as much as 0.5 percent against a basket of major currencies amid speculation that Spain is struggling to avoid a bailout from mounting sovereign debt. On Oct. 5, gold reached the highest in almost 11 months after the U.S. unemployment rate fell to the lowest since January 2009, easing pressure on the Federal Reserve to expand monetary stimulus.
“The dollar is keeping the market quiet,” Pratik Sharma, a fund manager at Miami-based Atyant Capital, said in a telephone interview. “There is also some profit-taking.”
Gold futures for December delivery fell 0.3 percent to settle at $1,775.70 an ounce at 1:41 p.m. on the Comex in New York. On Oct. 5, the metal reached $1,798.10, the highest for a most-active contract since Nov. 9.
In September, gold advanced 5.1 percent as stimulus programs in the U.S., Europe and Japan and low interest rates enhanced the appeal of the metal as an alternative to currencies.
Silver futures for December delivery slumped 1.6 percent to $34.017 an ounce on the Comex, the biggest drop since Sept. 24.
Platinum futures for January delivery fell 0.5 percent to $1,698.80 an ounce on the New York Mercantile Exchange. Palladium futures for December delivery declined 0.9 percent to $656.95 an ounce.
To contact the reporter on this story: Debarati Roy in New York at email@example.com
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org