Gold futures pared gains as the rally in U.S. equities damped demand for the metal as an alternative investment. Platinum advanced on South African supply concerns amid labor turmoil.
The Standard & Poor’s 500 Index rose as much as 0.3 percent. The gauge climbed to a record last week. Earlier, gold gained as much as 0.7 percent as the dollar snapped the longest rally since May against a basket of 10 currencies. Federal Reserve Bank of Dallas President Richard Fisher said he wouldn’t rule out backing a tapering of the central bank’s debt purchases by March.
“The buoyant stock market and the comment from Fischer are putting pressure on gold,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “The weakness in the dollar is supporting gold, helping it remain in positive territory.”
Gold futures for December delivery rose 0.1 percent to close at $1,314.70 an ounce at 1:40 p.m. on the Comex in New York. On Nov. 1, the price touched $1,305.60, the lowest for a most-active contract since Oct. 17.
This year, gold has tumbled 22 percent, heading for the first annual drop since 2000. Some investors lost faith in the metal amid the rally in equities and low inflation.
Silver futures for December delivery fell 0.6 percent to $21.70 an ounce on the Comex. Earlier, the price touched $21.61, the lowest since Oct. 17.
On the New York Mercantile Exchange, platinum futures for January delivery increased 0.3 percent to $1,456.20 an ounce. The price climbed 2.5 percent in October.
South Africa’s National Union of Mineworkers began a strike yesterday over wages at Northam Platinum Ltd. The company proposed a meeting tomorrow with workers.
Palladium futures for December delivery advanced 1.5 percent to $749.50 an ounce on the Nymex, the biggest gain since Oct. 17.
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