BLBG:Gold Falls From Highest Since November on Stronger Dollar
Gold fell for a second day in London as some investors sold the metal after its rally to the highest in almost 11 months and as a stronger dollar curbed demand for an alternative investment.
The dollar climbed versus the euro as European finance ministers meet in Luxembourg today, while German Chancellor Angela Merkel visits Greece tomorrow for the first time since the crisis erupted. Gold reached $1,796.10 an ounce on Oct. 5, the highest since Nov. 14, before a report showed the U.S. unemployment rate fell to the lowest level since January 2009.
“We’re seeing a stronger dollar which is translating into weaker gold,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said today by phone. “We’ve had a very good run-up. We’re seeing a bit of profit-taking.”
Bullion for immediate delivery fell 0.7 percent to $1,767.76 an ounce by 9:25 a.m. in London. December-delivery futures were 0.6 percent lower at $1,769.90 on the Comex in New York.
Holdings in gold-backed exchange-traded products rose 4.1 metric tons to a record 2,569.6 tons on Oct. 5, data compiled by Bloomberg show. Bullion priced in euros, Swiss francs and South African rand set all-time highs last week, data compiled by Bloomberg shows.
Finance ministers meeting today are likely to make a positive statement on Greece’s progress toward reaching austerity targets needed to pave the way for the nation’s next bailout payment, European Union Commissioner for Economic and Monetary Affairs Olli Rehn said.
Silver for immediate delivery dropped 1.9 percent to $33.855 an ounce. Platinum slipped 1.7 percent to $1,678.50 an ounce after reaching $1,730.50 on Oct. 5, the highest since Feb. 29. Palladium declined 1.4 percent to $652 an ounce.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
