VINACHEM

Gold traded below a 15-week high asa technical gauge signaled a reversal after three weeks ofincreases, while emerging-market turmoil and U.S. economic datathat trailed estimates increased haven demand.

Bullion for immediate delivery traded at $1,325.10 an ounceat 2:23 p.m. in Singapore from $1,324.28 on Feb. 21, when pricescapped a third weekly gain. Gold reached $1,332.45 on Feb. 18,the highest since Oct. 31. The 14-day relative strength indexwas at 68.9 on Feb. 21, close to the level of 70 that signals tothose who study charts that prices may be set to reverse.

Gold is headed for a second monthly rise after housing andfactory output data that missed projections last week added toconcern that the U.S. recovery may be losing momentum just asthe Federal Reserve scales back asset purchases. Demand for ahaven increased as government efforts to rein in risky lendingin largest consumer China, and deadly protests in Ukraine andThailand hurt emerging-market assets already weakened by thecuts to U.S. stimulus.

“It remains to be seen if recent weakness in U.S. economicdata is really due to the weather or if it’s something investorsshould be more concerned with,” said Sun Yonggang, a Shanghai-based macroeconomic strategist at Everbright Futures Co. “Goldis getting some flows from risks in emerging markets but islooking increasingly overbought. Higher prices also turn offphysical buyers, the most sensitive part of demand.”

SPDR Holdings

Assets in the SPDR Gold Trust, the biggest exchange-tradedproduct backed by bullion, rose for the first time in a week onFeb. 21, while volumes for Shanghai’s benchmark spot contractfell that day as metal for immediate delivery traded at adiscount to London prices.

In China, Industrial Bank Co. suspended loans to someproperty developers and tightened lending to real estate-relatedindustries including steel and cement, the Shanghai SecuritiesNews reported, adding to concern that growth will be curbed inthe world’s second-largest economy.

Gold for April delivery rose 0.1 percent to $1,325.40 anounce on the Comex. The net-long position rose 31 percent to a16-week high of 90,942 futures and options in the week to Feb.18, U.S. Commodity Futures Trading Commission data show.

Silver dropped as much as 1.3 percent to $21.5224 an ounceand was at $21.6846. Last week, prices posted a third weeklyadvance in the longest such run since August.

Platinum fell 0.2 percent to $1,426.25 an ounce, whilepalladium declined 0.4 percent to $737.40 an ounce.

Output has been hurt and revenue lost at the world’s threebiggest platinum producers after more than 70,000 workers in South Africa downed tools Jan. 23, demanding that salaries bedoubled for the lowest-paid staff.