Gold Falls With Silver After Rally Yesterday as Dollar Climbs

08:58 PM @ Tuesday - 02 December, 2014
Gold fell, paring gains from the biggest one-day rally in more than a year, as a stronger dollar curbed demand for the metal as a protection of wealth. Silver and platinum dropped.

The Bloomberg Dollar Spot Index rose for the third time in four days, extending gains before employment data this week that analysts said will show the U.S. economy added more than 200,000 jobs for the 10th consecutive month in November. Lower oil prices also weighed on gold prices amid concerns about deflation.

“If the dollar holds on to its recent gains, gold is likely to face headwinds ahead,” Abhishek Chinchalkar, an analyst at Mumbai-based AnandRathi Commodities Ltd., said in a note today.

Gold for February delivery dropped 1.9 percent to $1,195.10 an ounce by 7:18 a.m. on the Comex in New York. Bullion for immediate delivery slipped 1.4 percent to $1,195.50 in London, according to Bloomberg generic pricing.

The metal jumped 3.6 percent yesterday, reaching a one-month high. It rebounded as crude oil reversed a drop to the lowest in five years and as some investors closed out bets on lower prices.

Brent crude fell 1.2 percent today in London trading to $71.70 a barrel.

Gold futures trading volume on the Comex was 37 percent above the 100-day average for this time of day, data compiled by Bloomberg show.

Dollar Gains

The dollar index has climbed 8.6 percent this year. The Fed will raise rates delicately and sensibly, while the Bank of Japan takes steps to boost inflation and euro-area policy makers seek to spur growth, International Monetary Fund Managing Director Christine Lagarde said yesterday. Oil’s drop will provide a net boost to the global economy, she said.

“The U.S. dollar still appears to be the favored currency and may provide greater headwinds for gold,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Shorts exiting the market will provide only near-term strength.”

Silver for delivery in March slid 3 percent to $16.185 an ounce in New York. It rebounded yesterday from a five-year low of $14.155 and ended the day 7.3 percent higher, the biggest gain since September 2013.

Platinum for January delivery fell 1.8 percent to $1,219.30 an ounce. Prices gained 2.5 percent yesterday, the most since October 2013. Palladium for March delivery lost 1.1 percent to $799.05 an ounce.
Nguồn:
LinkedInPinterest

OTHERS

More News