Gold Declines for Second Day as China Survey Curbs Haven Demand
Gold fell for a second day after a survey showed China’s manufacturing growing at the fastest pace in two years and the International Monetary Fund said global growth will accelerate this year, curbing haven demand.
Gold for immediate delivery fell as much as 0.2 percent to $1,681.80 an ounce, and was at $1,683.80 at 10:59 a.m. in Singapore after losing 0.4 percent yesterday. Bullion for February delivery dropped 0.2 percent to $1,683.30 an ounce on the Comex in New York.
In China, a private survey of companies from HSBC Holdings Plc and Markit Economics climbed to 51.9 in January, bolstering prospects that economic growth in the second-largest economy will accelerate. The world economy will expand 3.5 percent this year from 3.2 percent in 2012, the IMF said yesterday in an update of its World Economic Outlook.
“We might see a slowdown in Western demand for gold with the economic situation looking a little more stable potentially,” Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd., said by phone. “That fear trade is lower in peoples’ minds.”
China’s growth may accelerate to 8 percent in the first quarter and 8.2 percent in the second quarter, according to the median estimate compiled by Bloomberg, from 7.9 percent in the three months ended Dec. 31. The U.S., the world’s biggest economy, may expand 1.5 percent this quarter and 2.1 percent in the next three-month period, according to estimates.
Physical purchases from India, the biggest bullion consumer in 2011, may slow after it raised import duties on gold and platinum to 6 percent from 4 percent, Trevethan said by phone.
Cash bullion of 99.99 percent purity fell 0.5 percent to 338.05 yuan a gram ($1,690.58 an ounce) on the Shanghai Gold Exchange.
Silver for immediate delivery dropped 0.5 percent to $32.0925 an ounce. Spot platinum was little changed at $1,685.50 an ounce. Palladium slumped 0.9 percent to $720 an ounce.
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