BLBG: Gold, Silver Futures Tumble Most in Eight Weeks
Gold and silver futures fell the most in eight weeks as the U.S. faced opposition from Russia on a military strike against Syria, eroding demand for a haven. Platinum and palladium also tumbled.
Russian President Vladimir Putin said he will only support a United Nations resolution for military strikes if there’s conclusive proof that the Syrian government used chemical weapons on its people. A U.S. Senate committee is set to vote today on President Barack Obama’s request for authority a strike. The Federal Reserve will release a report today on U.S. regional economies.
“Russia’s objections are taking some premium out of gold as it’s becoming increasingly clear that U.S. will face opposition,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Also, the tapering worries remain” on the timing for the Fed to scale back monetary stimulus, he said.
Gold futures for December delivery fell 1.6 percent to $1,388.80 an ounce at 10:28 a.m. on the Comex in New York. A close at that price would mark the biggest decline for a most-active contract since July 5.
Through yesterday, gold dropped 16 percent this year, entering a bear market in April, as some investors lost faith in the metal amid an equity rally and low U.S. inflation. The price climbed 20 percent from a 34-month low of $1.179.40 on June 28 after Asian demand surged for jewelry, bars and coins.
Silver futures for December delivery fell 3.7 percent to $23.515 an ounce on the Comex, heading for the biggest slump since July 5.
On the New York Mercantile Exchange, platinum futures for October delivery dropped 2.5 percent to $1,499.30 an ounce, the largest decline since June 26.
Palladium futures for December delivery fell 1.8 percent to $705an ounce. The price headed for the fifth straight decline, the longest slump since October.
To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net;
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
