- Negotiations in Doha between oil producers end without pact
- Bullion erases gains after climbing as much as 0.7 percent
Gold swung between gains and losses Monday as a selloff in oil and advances in equities left investors contemplating the metal’s appeal as an alternative asset.
Negotiations in Doha between OPEC members and other oil producers ended without an agreement to limit supplies, a diplomatic failure that threatens to renew a rout in prices and boost gold’s appeal as a haven asset. Equities gained amid better-than-forecast earnings from Morgan Stanley and Hasbro Inc.
Gold has climbed 16 percent this year amid financial-market tumult and concerns over the outlook for global economic growth. Money managers increased their wagers on a price rally to the highest since 2012, taking their optimism to a level last seen before a three-year bear market started.
“Overnight, oil was going lower and stocks were down, but the stock market has recovered all the losses,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview. “That’s all that happened here for gold in the last hour and a half, and that’s probably justifiable for how we just moved here.”
Gold futures for June delivery climbed less than 0.1 percent to settle at $1,235 an ounce at 1:45 p.m. on the Comex in New York, headed for a second day of gains.
The net-long position in gold futures and options jumped 13 percent to 184,218 contracts in the week ended April 12, according to Commodity Futures Trading Commission data released three days later.
Assets in exchange-traded funds backed by gold increased for the first time in three days on Friday, rising 5.3 metric tons to 1,765.3 tons, data compiled by Bloomberg show. Investors have increased holdings by 21 percent this year.
In other precious metals:
- Silver futures for May delivery slid 0.4 percent to $16.253 an ounce on the Comex.
- On the New York Mercantile Exchange, platinum and palladium dropped.