BLBG:Gold Extends Declines in London as Demand May Slow From Jewelers
Gold extended declines in London on speculation higher prices will curb demand from jewelers.
Prices have climbed for three weeks as U.S. Federal Reserve Chairman Ben S. Bernanke said it’s too early to decide whether to scale back on stimulus to boost the economy. Physical purchases of gold have slowed in the past two weeks as higher prices deterred demand, Standard Bank Group Ltd. said.
“If the $1,300 level can’t hold, look for a quick collapse back to the $1,265-70 support area,” said Jim Pogoda, a trading consultant at Gold Bullion International in New York, in an e-mail yesterday. “This will continue to be a market driven by the latest hints of what the Fed might do, and of course when.”
Gold for immediate delivery dropped 0.4 percent to $1,329.31 an ounce by 10:33 a.m. in London. Gold futures traded in New York were 0.1 percent lower at $1,328.40 an ounce.
Platinum fell 1.1 percent to $1,433.61 an ounce, palladium was down 25 cents at $738.75 an ounce and silver retreated 0.8 percent to $20.0984 an ounce.
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
