BLBG:Gold Falls as Strengthening Dollar Curbs Investor Demand
Gold fell to a six-week low in New York on speculation a stronger dollar will curb demand for an alternative investment. Other precious metals declined.
The U.S. Dollar Index, a measure against six major trading partners, climbed to a one-week high. Bullion has erased gains made after the Federal Reserve announced a third round of debt- buying on Sept. 13. The Fed concludes a meeting tomorrow. Stimulus measures taken by central banks from Europe to China helped drive gold to a 10-month high of $1,798.10 an ounce on Oct. 5.
“The dollar has been stronger and that’s one of the reasons why gold has been under pressure,” Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva, said today by phone. “It could be a healthy correction. It’s just a matter of time before gold can reach $1,800 an ounce.”
Gold for December delivery fell as much as 1.1 percent to $1,706.70 an ounce, the lowest since Sept. 7, and was at $1,710.40 by 7:52 a.m. on the Comex in New York. Bullion for immediate delivery was 1.1 percent lower at $1,709.70 in London.
The Bank of Japan (8301) will next week announce its policy decision and issue revised economic projections for the 2012 and 2013 fiscal years and its first set of forecasts for 2014.
Japan’s Economy Minister Seiji Maehara, who has been calling for more action from the central bank, said today he may attend the BOJ’s next meeting on Oct. 30 if his schedule permits. Maehara was present at the previous gathering ended Oct. 5, the first minister to do so for more than nine years.
Silver for December delivery slid 1.5 percent to $31.78 an ounce after reaching $31.65, the lowest since Sept. 4. Platinum for January delivery was down 1.5 percent at $1,588 an ounce and reached a six-week low of $1,583.50. Palladium for December delivery fell 2.4 percent to $607.40 an ounce. It reached $606.75, the lowest since Aug. 31.
To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
