Gold declined for the first time in three sessions in New York as signs that European leaders are making progress to stem the crisis eroded demand for the precious metal as a haven.
German Chancellor Angela Merkel’s government backed the European Central Bank’s bond-buying plan, her deputy spokesman Georg Streiter said yesterday. The Standard & Poor’s 500 Index of equities advanced as much as 0.9 percent, while the S&P GSCI Index of 24 raw materials jumped as much as 1.5 percent. Estimated total volume of gold contracts traded today was 75,260, compared with a daily average of 188,000 in the seven months ended July 31.
“There is money flowing into equities and other commodities in a day of very thin volumes,” Sterling Smith, a commodity strategist at Citigroup Inc.’s institutional client group in Chicago, said in a telephone interview. “People are favoring more riskier assets today.”
Gold futures for December delivery fell 0.2 percent to settle at $1,612.80 an ounce at 1:48 p.m. on the Comex in New York. Prices gained 1.6 percent in the previous two sessions.
Silver futures for September delivery advanced 0.8 percent to $28.086 an ounce in New York, rising for the third straight session.
On the New York Mercantile Exchange, platinum futures for October delivery gained 0.6 percent to $1,410.40 an ounce. Palladium futures for September delivery added 1.5 percent to $588.20 an ounce.