Gold was little changed in New York, erasing earlier gains and losses, as US stocks rallied, sending the Standard & Poor’s 500 Index to a six-month high, and the dollar weakened. Silver rose.
The S&P jumped as much as 3.1 per cent, touching the highest since November 10. The MSCI Emerging Markets Index, which has risen 61 per cent since February 27, climbed as much as 4 per cent, heading for the biggest gain in almost a month. Some investors sell gold to invest in other markets, including equities, when they offer higher returns.
"The stock market is surprisingly strong," Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, said in a telephone interview. Kaplan has been trading gold for 35 years. "Everybody thinks the recession is over and I don’t think that for a minute."
Gold futures for August delivery slipped 30 US cents to $US980 an ounce on the New York Mercantile Exchange’s Comex division. The most-active contract earlier fell as much as 0.5 per cent, touching $US975.40, and climbed as much as 1 per cent to $US990.20.
Bullion for immediate delivery in London slid $US2.33, or 0.2 per cent, to $US976.82 an ounce. The spot price mirrored US futures in gains and losses today.
Gold climbed earlier as the dollar weakened, dropping as much as 0.6 per cent against the euro.
"This rally is just about the weaker dollar," Kaplan said as the price gained.
Silver futures for July delivery advanced 12.5 US cents, or 0.8 per cent to $US15.735 an ounce. Silver for immediate delivery in London declined 9 US cents to $US15.65 an ounce.
