BLBG:Gold Swings Near 4-Month Low as Investors Weigh Data, Stimulus
Gold fluctuated near a four-month low, heading for a third monthly decline, as investors assessed the timing of a reduction in stimulus by the Federal Reserve following signs of improvement in the U.S. economy.
Bullion for immediate delivery rose and fell 0.3 percent, and traded at $1,240.80 an ounce by 3:51 p.m. in Singapore from $1,237.98 yesterday, when prices slid 0.4 percent after reports on U.S. jobless claims and consumer confidence. Prices dropped to $1,225.55 on Nov. 25, the lowest since July 8, and are down 6.2 percent this month.
Gold has slumped 26 percent this year, snapping a 12-year bull run on speculation that the Fed will begin paring its $85 billion of monthly bond buying. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, declined to 843.21 metric tons yesterday, the least since January 2009, and have contracted 38 percent this year.
“There are few catalysts to spur the gold price in the near term,” said Mark To, head of research at Wing Fung Financial Group, a Hong Kong-based trader and refiner. “Positive economic data from the U.S. will weigh on prices. Trading is expected to be light with the U.S. holiday.”
Data yesterday showed the number of Americans claiming jobless benefits in the week ended Nov. 23 declined to the fewest in two months and the Conference Board’s index of U.S. leading indicators rose for a fourth straight month in October. Separate reports also showed an unexpected increase in consumer sentiment, while orders for durable goods dropped.
Thanksgiving Holiday
Gold for February delivery on the Comex in New York added 0.2 percent to $1,240.30 an ounce in volume that was 13 percent below the average for the past 100 days at this time. U.S. markets are closed for the Thanksgiving holiday and today’s transactions will be booked with tomorrow’s trades for settlement purposes.
Spot silver rose 0.2 percent to $19.7055 an ounce after a 2.9 percent decline in the two days through yesterday. The worst-performing precious metal in 2013 tumbled 10 percent in November, taking this year’s loss to 35 percent.
Platinum gained 0.4 percent to $1,357.25 an ounce after earlier dropping to $1,351.70, the lowest since July 8. Prices are 6.4 percent lower this month. Palladium was little changed at $718.13 an ounce, set to snap two months of gains.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
