BLBG:Gold Swings Between Gains and Declines as Greek Deal Reached
Gold swung between gains and losses in London as a pact on Greece’s debt burden weakened the dollar and physical demand from India, last year’s biggest buyer, remained slack. Silver reached a six-week high.
The U.S. Dollar Index, a measure against six major trading partners, fell to near a three-week low after euro-area finance chiefs and the International Monetary Fund agreed to cut Greece’s interest rates and gave it more time to pay back rescue loans. The gauge pared some losses after Federal Reserve Bank of Dallas President Richard W. Fisher said accommodative policies can’t be left in place forever.
“The metal is showing little desire to budge from this price level,” Edel Tully, an analyst at UBS AG in London, wrote today in a report, referring to gold near $1,750 an ounce. “Physical demand is uneventful. Indian demand has retreated. While some European buying was evident, once again, its size and consistency lack any price follow-through.”
Gold for immediate delivery added 77 cents to $1,749.42 an ounce by 9:13 a.m. in London. Prices gained as much as 0.2 percent and fell as much as 0.1 percent and reached $1,754.65 on Nov. 23, the highest since Oct. 15. Gold for December delivery was little changed at $1,749.30 on the Comex in New York.
Holdings in gold-backed exchange-traded products rose 0.7 metric ton to a record 2,607 tons yesterday, data compiled by Bloomberg show. The U.S. Mint sold 75,500 ounces of American Eagle gold coins so far this month, the most since January, data on its website show.
Ministers from the 17-nation euro bloc started their meeting in Brussels yesterday, less than a week after an all- night gathering failed to yield agreement and days after an EU summit broke up without a proposed seven-year budget.
Silver for immediate delivery fell 0.1 percent to $34.11 an ounce, after reaching $34.285, the highest since Oct. 11. Platinum was 0.4 percent higher at $1,618.99 an ounce. Palladium rose 1 percent to $670.75 an ounce. It reached $672.75, the highest since Oct. 5.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net
