Gold Drops for Sixth Day as U.S. Data Adds to Case for Tapering
Gold fell a sixth day in the longest run of losses since May, heading for the first weekly decline in a month, as U.S. economic data backed the case for less stimulus.
Spot gold lost as much as 0.5 percent to $1,303.02 an ounce, and traded at $1,305.26 at 7:23 a.m. in Singapore. The Bloomberg Dollar Index, which tracks the greenback against 10 currencies, rose the most in more than a month yesterday as claims for jobless benefits fell to a five-year low.
Gold has retreated 2.1 percent this week, heading the biggest drop since the five days to June 28. Data today may show that U.S. unemployment fell in July, while employers added 185,000 jobs. The Federal Reserve said this week that it will maintain its $85 billion monthly asset-buying program and that persistently low inflation could hamper the economic expansion.
“Gold falls on U.S. dollar strength as U.S. economic data surprised to the upside,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “The gold market will likely focus on the upcoming release of nonfarm payrolls data.”
Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded fund decreased to 921.05 metric tons yesterday, after being unchanged for four days. Holdings have contracted 32 percent this year to the lowest level since February 2009.
Gold for December delivery lost as much as 0.7 percent to $1,302.20 an ounce on the Comex in New York, and traded at $1,304, falling for a fourth day. Futures are 1.4 percent lower this week, also the first weekly loss in a month.
Silver for immediate delivery fell 0.2 percent to $19.593 an ounce, heading for a weekly decline. Spot platinum lost 0.2 percent to $1,436.80 an ounce, trimming a fourth weekly increase that’s the best run since January. Palladium declined 0.2 percent to $731.20 an ounce, set for a weekly gain.
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