Gold Seesaws Around $1,200 With Market Volatility Fading AwayEddie van der Walt
The gold market is stuck in a holding pattern.
Gold for June delivery was little changed at $1,202.50 an ounce by 7:37 a.m. on the Comex in New York. Prices have alternated between daily gains and losses for the past week and a measure of 60-day volatility dropped to the lowest since November. Trading volume was 15 percent below the 100-day average for the time of day.
The market has fluctuated around $1,200 an ounce since late March as concerns over Greek debt talks offset rising equities. Greece has been struggling to make progress toward releasing financial aid since striking a deal to extend its bailout program in February.
“It has been a bit like groundhog day for gold around the $1,200 level,” Bernard Dahdah, an analyst at Natixis SA in London, said by phone. “The Greek story might have had a larger impact, but the flow of money into equities is sucking potential investment away from the gold market.”
Assets in gold-backed exchange-traded products increased 0.2 percent to 1,624.5 metric tons, according to data compiled by Bloomberg as of Tuesday. While holdings are still near the lowest since mid-January, they’ve increased for the past three days, the longest stretch in two months.
Bullion for immediate delivery added 0.1 percent to $1,203.28 in London, according to Bloomberg generic pricing.
Silver futures for May delivery were little changed at $16.015 an ounce in New York. Platinum for July delivery fell 0.7 percent to $1,144.90 an ounce, while palladium for June delivery dropped 1 percent to $766.90 an ounce.