Gold Futures Sag Most in a Week as Oil, Equities Gain

  • 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.
(Corrects ETF figure in first bullet point in story published Jan. 21.)
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