Gold Falls From Six-Week High on Demand Outlook to Dollar

04:30 PM @ Wednesday - 22 October, 2014
Gold retreated from the highest in almost six weeks on speculation physical buying will slow and as investors weighed a stronger dollar.

The Bloomberg Dollar Spot Index, a measure against 10 major currencies, reached a one-week high today. Bullion reached $1,255.34 an ounce yesterday, the highest since Sept. 10. Demand in India, the second-biggest gold buyer, noticeably strengthened before the Diwali festival and after gold fell to this year’s lows several weeks before the celebration, UBS AG said.

Gold has risen 3.2 percent this month as traders pushed back estimates for when the Federal Reserve will raise U.S. interest rates. The International Monetary Fund cut its economic growth outlook this month and Fed policy makers said slowing foreign economies were a risk to U.S. expansion.

“Physical demand is drying up at these levels, having seen a big increase over the last couple of weeks with lower prices,” David Govett, head of precious metals at Marex Spectron Group in London, said in a note. “For the short term, I think we may be slightly overdone up here and would look to sell rallies, whilst obviously keeping a close eye on the dollar.”

Gold for immediate delivery lost 0.1 percent to $1,247.08 an ounce by 10:11 a.m. in London, according to Bloomberg generic pricing. Gold for December delivery declined 0.4 percent to $1,247.20 on the Comex in New York.

Futures trading volume was 20 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg show.

Diwali, the festival of lights celebrated tomorrow, is considered an auspicious time for buying gold. Researcher CPM Group estimates the holiday generates about a fifth of India’s annual purchases. Dhanteras, the biggest gold-buying festival, was celebrated yesterday.

Silver for immediate delivery lost 0.8 percent to $17.3825 an ounce in London. Platinum fell 0.6 percent to $1,272.32 an ounce. Palladium was 0.5 percent lower at $772.25 an ounce.
Nguồn:
LinkedInPinterest

OTHERS

More News