BLBG:Gold Declines With Raw Materials; Silver Also Retreats
Gold fell to the lowest level in more than two weeks in New York as commodities fell and the dollar held steady. Silver declined to a one-month low.
Raw materials slid as concern that the global economy is weakening offset China reporting better-than-expected export data. The U.S. Dollar Index, a gauge against six counterparts, was little changed after adding as much as 0.4 percent earlier today. The index climbed 0.4 percent last week.
“We do not expect to see a sustained rebound at the moment, while bullion continues to trade against the dollar,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today in a report. The market has support around the $1,750 level and further support at $1,725 “should our intermediate support finally fail on a confirmed close below $1,750,” he said.
Bullion for December delivery dropped as much as 1 percent to $1,742.60 an ounce on the Comex in New York, the lowest since Sept. 26, before trading 0.6 percent down at $1,749.80 by 7:36 a.m. Gold for immediate delivery fell as much as 0.7 percent to $1,741.75, also the lowest price since Sept. 26, before trading 0.3 percent down at $1,748.40.
Gold at the morning “fixing,” used by some mining companies to sell output, declined to $1,747.25 in London from $1,766.75 on the afternoon of Oct. 12.
The Standard and Poor’s GSCI spot gauge of 24 commodities was 0.2 percent lower, after earlier today falling as much as 0.7 percent to the lowest level since Oct. 9.
Bullion also retreated on speculation that China may not need additional stimulus after exports grew more than estimated in September.
China Exports
China’s exports increased 9.9 percent from a year earlier, the customs administration said Oct. 13. That was more than the 5.5 percent median estimate in a Bloomberg survey of economists. At an International Monetary Fund meeting yesterday, China’s central bank official Yi Gang said bubble risks remain in housing markets in major cities and stimulus will be restricted to an “appropriate” level.
“That might mean there’s less chance of stimulus or the size of the stimulus might be a bit less,” said Alexandra Knight, an analyst at National Australia Bank Ltd. “Precious metals have benefited a lot from speculation about increased stimulus over the last few weeks.”
Silver for delivery in December dropped as much as 1.8 percent to $33.06 an ounce, the lowest since Sept. 13, and was recently down 0.9 percent at $33.355.
Platinum for January delivery fell as much as 1.4 percent to $1,635.60 an ounce, the lowest since Sept. 27, and traded down 0.7 percent at $1,647.30 recently. Palladium for December delivery rose 0.1 percent to $639.85 an ounce, after dropping as much as 1.4 percent to $630 earlier today.
To contact the reporters on this story: John Deane in London at jdeane3@bloomberg.net; Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
