Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gold Falls on GDP, Trimming Biggest Weekly Gain in 15 Months

Don't Miss Out —
Follow us on:
Gold Advances to Highest Since Rout, Set for Best Week Since ’11
Gold surged 12 percent from a two-year low on April 16 as coin and jewelry demand expanded from the U.S. to China and India. Photographer: Junko Kimura/Bloomberg

April 26 (Bloomberg) -- Gold futures fell, trimming the biggest weekly gain in 15 months, as the U.S. economy expanded less than forecast, driving commodities lower and crimping demand for the precious metal as a hedge against inflation.

Gross domestic product rose at a 2.5 percent annual rate, Commerce Department figures showed today. The median estimate of 86 economists surveyed by Bloomberg called for a 3 percent gain. This week, gold jumped 4.2 percent, the most since late January 2012, as demand for coins, bars and jewelry surged following last week’s plunge in futures. The Standard & Poor’s GSCI index of 24 raw materials slumped as much as 1.1 percent, led by industrial metals.

“Inflation is one thing you do not have to worry about if the world’s largest economy is struggling and instead the concern should be deflation,” Michael Gayed, the chief investment strategist at New York-based Pension Partners LLC, which advises on $190 million in assets, said in a telephone interview. “And when you have a rally like the one we saw in gold, there is bound to be some profit-taking.”

Gold futures for June delivery declined 0.6 percent to settle at $1,453.60 an ounce at 1:38 p.m. on the Comex in New York. Prices earlier rose as much as 1.6 percent, mainly on increased physical buying.

On April 15, futures plummeted 9.3 percent, the most in 33 years. On the following day, the price touched $1,321.50, the lowest in 26 months. Since then, the metal has climbed 10 percent.

Assets Cut

In China, gold buyers were hoarding the metal and demand is “strong” in Dubai, Bernard Sin, the head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva, said by e-mail today.

Investors cut assets in gold-backed exchange-traded products to 2,294.5 metric tons yesterday, the lowest since October 2011, data compiled by Bloomberg showed.

Silver futures for July delivery fell 1.6 percent to $23.788 an ounce on the Comex. The metal has tumbled 21 percent this year, the worst performer on the S&P GSCI index.

Trading was 50 percent higher than the average in the past 100 days for this time of day for gold and was almost triple for silver, according to Bloomberg data.

On the New York Mercantile Exchange, platinum futures for July delivery climbed 0.8 percent to $1,476.50 an ounce. This week, the price advanced 3.7 percent, the most in three months.

Palladium futures for June delivery rose 0.1 percent to $681.95 an ounce, the second straight gain. The metal has dropped 3 percent this year.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.