BLBG:Gold Trades Near 2-Week High as Data Show U.S. Economy Improving
Gold traded near a two-week high as U.S. data showing a strengthening economy damped demand for haven assets.
Spot gold traded little changed at $1,588.25 an ounce by 10 a.m. in London. The metal rose and fell as much as 0.2 percent today. Bullion yesterday reached $1,599.85 an ounce, the most expensive since Feb. 28. Platinum fell 0.2 percent to $1,586.86 an ounce, dropping for a fourth day.
U.S. retail sales jumped the most in five months in February, data showed yesterday. Spot gold is down 5.3 percent this year amid speculation that the Federal Reserve may scale back stimulus as the recovery accelerates. Assets in gold-backed exchange-traded products dropped to 2,470.877 metric tons, the lowest since September, according to data tracked by Bloomberg.
“Positive U.S. economic data underscored recent concerns by the bullion market that the Federal Reserve may withdraw from its quantitative easing program,” Howard Wen, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Bullion edged lower as the equity rally remained intact.”
Gold for April delivery slipped as much as 0.4 percent to $1,582.30 an ounce on the Comex in New York and traded at $1,586.80 after reaching a two-week high of $1,598.80 yesterday. The most-active price has dropped 5.4 percent this year as the MSCI All-Country World Index of equities rose 5.9 percent.
Silver for immediate delivery fell 0.9 percent to $28.8825 an ounce, after declining 1.7 percent earlier. Silver ETP holdings jumped to a record 19,708.15 tons yesterday, according to data tracked by Bloomberg. Spot palladium lost 0.7 percent to $765.30 an ounce, falling for a fourth day.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net
