- S&P Index recovers from 21-month low as energy shares advance
- Exchange-traded holdings still set for biggest gain in 4 years
Gold futures fell the most in a week as crude oil rose and a rally in U.S. shares lifted global equities from the brink of a bear market, reducing demand for haven assets.
The Standard & Poor’s 500 Index of equities recovered from a 21-month low as energy shares rallied. European equities advanced the most in a month amid speculation that the region’s central bank may add stimulus to combat disinflation.
Gold futures climbed on Wednesday to the highest since Jan. 8 as worries over Chinese economic growth and declining oil prices spurred an equities sell-off, sending gauges in Europe to bear markets and fueling demand for bullion as a haven. China’s vice president said the country will keep intervening in the stock market to tamp down fluctuation, helping emerging-market assets pare losses.
“Traders took a more risk-on approach, as crude oil and equities move higher,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “Investors are exiting flight-to-quality plays like gold and silver.”
Gold futures for February delivery slipped 0.7 percent to settle at $1,098.20 an ounce at 1:43 p.m. on the Comex in New York. Aggregate trading was 51 percent above the 100-day average for this time, data compiled by Bloomberg show.
- Investor holdings in exchange-traded products backed by gold are up 0.4 percent this week. Holdings in platinum, palladium and silver fell over the same period.
- Silver futures fell on the Comex, while palladium rose and platinum was little changed on the New York Mercantile Exchange.