Gold declined for the second time in three days in New York as a stronger dollar eroded appeal of the precious metal as an alternative investment.
The dollar rose as much as 0.4 percent against a basket of six major currencies as investors awaited tomorrow’s European Central Bank meeting. Gold slid to a four-month low on Jan. 4 after minutes from the Federal Reserve indicated that policy makers may end $85 billion in monthly bond purchases this year.
“It’s the dollar that’s keeping the market under pressure today,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “There is also some nervousness about the Fed statement.”
Gold futures for February delivery fell 0.4 percent to settle at $1,655.50 an ounce at 1:39 p.m. on the Comex in New York. The metal climbed 7 percent last year, a 12th straight annual gain, as the Fed increased its asset purchases.
Prices earlier rose as much as 0.2 percent, climbing above the 200-day moving average near $1,663.22. The move is a bullish signal to some analysts who study historical price patterns.
Silver futures for March delivery fell 0.7 percent to $30.249 an ounce, declining for the first time in three days.
On the New York Mercantile Exchange, platinum futures for April delivery gained 1.1 percent to $1,600 an ounce.
Palladium futures for March delivery jumped 3 percent to $688.20 an ounce, the biggest gain for a most-active contract since Nov. 13.
To contact the editor responsible for this story: Steve Stroth at email@example.com