BLBG: Gold May Fall, Extending Longest Losing Streak Since June 2006
Gold, little changed today in London, may extend its longest losing streak since June 2006 as rising equities and speculation governments will broaden efforts to revive the economy reduces demand for bullion as a haven.
Stocks in Europe and Asia advanced, pushing the MSCI World Index higher for the first time in six days. Chinese Premier Wen Jiabao will announce a new stimulus package tomorrow, according to former Statistics Bureau head Li Deshui. Gold dropped 7.7 percent in the previous seven trading days.
“There’s slightly more positive data out of China” and the gain in equities “improved sentiment and helps add downward pressure on gold,” said Standard Chartered Plc analyst Dan Smith. “People are still taking profits after the recent rally. Gold may head toward $900 an ounce in the short term.”
Bullion for immediate delivery fell 4 cents to $916.23 an ounce at 10:08 a.m. local time. April futures rose $2.90, or 0.3 percent, to $916.40 an ounce in electronic trading on the New York Mercantile Exchange’s Comex division.
A Chinese manufacturing index climbed for a third month, adding to evidence that a 4 trillion-yuan ($585 billion) stimulus package is pushing the world’s third-biggest economy closer to a recovery.
Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, held at a record 1,029.29 metric tons for a fourth day yesterday. Holdings in the fund have increased 32 percent since the start of the year.
Among other metals for immediate delivery in London, silver added 0.6 percent to $12.90 an ounce. Platinum rose 1.3 percent to $1,047 an ounce and palladium was unchanged at $194 an ounce.
