June 25 (Bloomberg) -- Gold slid for a second straight day as signs of improving U.S. economic growth boosted speculation that the Federal Reserve will end its stimulus program.
Orders for durable goods rose a better-than-forecast 3.6 percent in May, while confidence among U.S. consumers climbed in June to the highest in more than five years, separate reports showed today. Gold slumped 6.9 percent last week after Fed Chairman Ben S. Bernanke said the central bank may slow its asset-purchase program if the U.S. economy continues to improve.
Bullion has tumbled 24 percent this year as some investors lose faith in it as a store of value and as speculation grew that the Fed will taper debt-buying that helped the metal extend a rally to a 12-year bull run through 2012. Morgan Stanley and Credit Suisse Group Inc. cut their price forecasts today, joining Goldman Sachs Group Inc. and UBS AG in paring estimates.
“Gold does not like all this good economic news,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “Gold is very vulnerable now, and we are seeing a strong dollar push gold further down.”
Gold futures for August delivery slipped 0.2 percent to settle at $1,275.10 an ounce at 1:43 p.m. on the Comex in New York. The metal reached $1,268.70 on June 21, the lowest since September 2010.
The dollar gained as much as 0.4 percent against a basket of currencies, rising for the fifth straight session.
Morgan Stanley cut its 2013 gold forecast to $1,409 from $1,487, and lowered its 2014 target to $1,313 from $1,563, according to a report today. Russia and Kazakhstan were among nations that expanded bullion reserves in May, while Mexico and the Czech Republic reduced holdings, International Monetary Fund data show.
Silver futures for September delivery rose 0.1 percent to $19.552 an ounce in New York. Prices fell to $19.31 on June 21, the lowest since August 2010.
On the New York Mercantile Exchange, platinum futures for October delivery advanced 1.6 percent to $1,354.10 an ounce, the biggest gain since June 3.
Trading volume was more than double the average in the past 100 days for this time of day, according to data compiled by Bloomberg.
Palladium futures for September delivery added 1.7 percent to $668.80 an ounce.
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