BS: Gold Declines on Sales by Some Investors After Rally to Record
Sept. 15 (Bloomberg) -- Gold futures fell on sales by some investors after the rally yesterday to a record $1,276.50 an ounce.
Yesterday, gold jumped 2 percent, the most in seven months, partly as the dollar’s slump boosted the appeal of the precious metal as an alternative investment. The greenback gained as much as 0.8 percent today against a basket of major currencies after dropping 2 percent in the previous two days.
“The volatility in currencies has led to consolidation in gold,” said James Moore, an analyst at TheBullionDesk.com in London.
Gold futures for December delivery dropped $3.40, or 0.3 percent, to $1,268.30 at 10:07 a.m. on the Comex in New York.
Yesterday, holdings in the world’s biggest exchange-traded fund backed by gold climbed the most in almost a month. Before today, futures advanced 16 percent this year, heading for the 10th straight annual gain.
“We are long gold,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “The only decision before us is when to add, and for the moment, we’ll simply sit tight, awaiting the inevitable correction after the fireworks of yesterday.”
Silver futures for December delivery rose 5.8 cents, or 0.3 percent, to $20.49 an ounce. Earlier, the metal reached $20.56, the highest price since March 2008.
Platinum futures for October delivery fell $2.20, or 0.1 percent, to $1,592.20 an ounce on the New York Mercantile Exchange.
Palladium futures for December delivery dropped $2.45, or 0.4 percent, to $551.35 an ounce.
--Editors: Patrick McKiernan, Daniel Enoch
To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
