BLBG:Gold Snaps Four-Day Advance as Rally Hurts Demand
Gold snapped a four-day advance as a rally to the highest level in almost three weeks damped demand and prompted some investors to sell. Silver declined.
Spot gold fell as much as 0.6 percent to $1,330.35 an ounce and was at $1,336.40 at 2:41 p.m. in Singapore. Bullion climbed 4.3 percent in the four days through yesterday, when it touched $1,344.40, the highest price since July 24.
The volume for Shanghai’s benchmark spot contract dropped to 9,182 kilograms yesterday from 10,336 kilograms on Aug. 9, according to the Shanghai Gold Exchange. The Bloomberg Dollar Index climbed for a second day before a report that may show U.S. retail sales expanded for a fourth month, bolstering the case for the Federal Reserve to scale back its asset purchases.
“The market is consolidating after recent gains, with a stronger dollar weighing on prices,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., a unit of one of China’s largest state-owned investment companies. “Higher prices may deter fresh investment and physical purchases.”
Gold has rebounded from a 34-month low on June 28 as lower prices spurred demand. Consumption in China, the second-largest bullion consumer, rose 54 percent in the first half of 2013, an industry group said yesterday.
SPDR Holdings
Gold for December delivery was little changed at $1,335.70 an ounce on the Comex after touching $1,343.70 yesterday, the highest price for a most-active contract since July 24.
Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, were unchanged yesterday after climbing on Aug. 9 for the first time since June 10. Holdings have contracted 33 percent this year.
Silver for immediate delivery fell for the first time in five days, dropping 0.2 percent to $21.3725 an ounce. Prices jumped 4.1 percent yesterday, the most in three weeks, and reached $21.4745, the highest since June 19.
Spot platinum gained 0.3 percent to $1,500.20 an ounce, while palladium was little changed at $736.90 an ounce.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
