Gold futures declined for the first time in three days as the dollar’s rebound reduced demand for the metal as an alternative investment.
The greenback gained against a basket of major currencies after U.S. initial jobless claims fell to the lowest in three weeks and a measure of manufacturing activity rose more than forecast, adding to evidence that the economy is recovering. The dollar advanced 0.6 percent last week, while gold declined 0.7 percent.
“The stronger dollar is putting pressure on gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said in a telephone interview. “The dollar is the winner today.”
Gold futures for December delivery fell 0.2 percent to settle at $1,715.50 an ounce at 1:40 p.m. on the Comex in New York. Earlier, the metal reached $1,727.50, the highest since Oct. 23. The price advanced 0.6 percent in the previous two days.
Silver futures for December delivery declined 0.2 percent to $32.248 an ounce on the Comex.
Platinum futures for January delivery fell 0.2 percent to $1,573.20 an ounce on the New York Mercantile Exchange.
Palladium futures for December delivery advanced 0.4 percent to $612.45 an ounce. The price climbed for the third straight day, the longest rally in almost a month.
-- Editors: Patrick McKiernan, Thomas Galatola
To contact the reporter on this story: Debarati Roy in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com