Gold declined for a fourth day in New York as a stronger dollar curbed demand for bullion as an alternative investment. Platinum futures dropped to the lowest since January.
The U.S. dollar gained for a ninth day against a six-currency basket. Bullion has slumped 3.4 percent this week as Greek politicians struggled to form a government following weekend elections, boosting speculation that the country may quit the euro zone. More than 50 percent of investors are predicting a country will leave the 17-nation euro area this year, according to the Bloomberg Global Poll.
“We are yet to see any evidence of bullion safe haven buying as investors choose the U.S. currency instead,” Andrey Kryuchenkov, a London-based analyst at VTB Capital, said in a report today.
June-delivery bullion declined 0.2 percent to $1,591.20 an ounce by 7:06 a.m. on the Comex in New York. The metal fell to $1,578.50 yesterday, the lowest since Jan. 3. Gold for immediate delivery was little changed at $1,591.25 an ounce in London.
“There remains the threat of further pressure as traders and investors seek to improve liquidity levels amid growing concerns over the stability of the euro region,” James Moore, an analyst at TheBullionDesk.com, said today in the report.
Greece’s political impasse entered a fourth day, with coalition talks deadlocked, raising the possibility that another election will have to be held as early as next month. Spain said it would take over Bankia SA and prepared to inject public funds into the banking group with the most Spanish real estate as part of government efforts to bolster confidence in the country’s lenders.
Bullion gained to $1,590 an ounce at the morning “fixing” in London, used by some mining companies to sell output, from $1,582.50 at the afternoon fixing yesterday.
Platinum for July delivery fell 0.6 percent to $1,489.40 an ounce after dropping to $1,486.10, the lowest since Jan. 17. Palladium for June delivery was unchanged at $613.65 an ounce. Silver for July delivery was little changed at $29.235 an ounce.