Gold Falls as Global Equities Rise on Easing Greek Debt ConcernsJoe Richter
Gold futures declined for the second straight day as easing concerns on Greek debt boosted global equities, reducing demand for alternative assets.
Greek Finance Minister Yanis Varoufakis proposed late on Monday to exchange existing debt for new bonds linked to economic growth. The MSCI All-Country World Index and the Standard & Poor’s 500 Index of U.S. stocks both rose as much as 1.3 percent.
Gold in January capped the biggest monthly gain in three years as concern that Greece would exit from the euro zone and signs of slowing economies outside the U.S. fueled demand for haven assets. The metal fell on Monday on concern that U.S. interest rates will increase soon.
“Greece is still a question mark, but it’s being pushed to the back burner a bit in terms of immediate safe-haven risk, and that’s pressuring gold,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “People are taking a little money off the table.”
Gold futures for April delivery fell 1.3 percent to settle at $1,260.30 an ounce at 1:51 p.m. on the Comex in New York. The metal dropped 0.2 percent on Monday.
Last year, gold posted a consecutive annual decline for the first time since 1998 as equities surged to a record and the U.S. economy gained traction.
BullionVault, an online service for investors to buy and sell physical gold and silver, said a gauge that measures buyers against sellers was unchanged in January at the lowest in almost five years.
Silver futures for March delivery gained 0.4 percent to $17.321 an ounce on the Comex. The price has dropped 11 percent in the past 12 months, while gold climbed less than 0.1 percent.
On the New York Mercantile Exchange, platinum futures for April delivery rose 0.5 percent to $1,235.20 an ounce.
The spot gold-platinum ratio fell 1.5 percent to 1.0223 at 2:46 p.m., heading for the biggest drop since Oct. 31, according to Bloomberg generic prices.
Gold for immediate delivery has settled above platinum since Jan. 15.
Palladium futures for March delivery fell 0.3 percent to $786 an ounce on the Nymex.