ENM: Gold swings near 2-wk low as investors weigh stimulus, dollar
LONDON: Gold today swung between gains and losses near a two-week low as investors weighed speculation the US Federal Reserve will curb stimulus against a weakening dollar.
The precious metal lost 0.1 per cent to $1,376.49 an ounce, while silver rose 0.6 per cent to $21.79 an ounce.
Data released last week showed US payrolls increased more than forecast in May, and Fed Chairman Ben S. Bernanke said that the central bank could curtail its $85 billion monthly bond purchases if the economy improves.
The dollar was little changed against six major currencies after falling to the lowest level since February 21 yesterday.
Prices rose 0.1 per cent and fell 0.3 per cent after reaching 1,366.19 dollar yesterday, the lowest since May 23.
Gold would continue to decline over the medium-term on a re-acceleration in US growth and a further unwinding of exchange- traded fund positions, Goldman Sachs said. The bank sees the metal trading at 1,345 dollar in 12 months.
Holdings in exchange-traded products fell 2.3 tonnes to 2,127.5 tonnes yesterday, the lowest since April, 2011.
