SD: Gold Trades Near Seven-Week Low on Stronger Dollar, Greece Plans
(Bloomberg) -- Gold traded near a seven-week low as the dollar strengthened and Greece’s creditors reviewed a list of debt-reduction policies.
The Bloomberg Dollar Spot Index reached the highest in more than a week before Federal Reserve Chair Janet Yellen was due to speak to lawmakers. Her speech may underscore prospects for higher U.S. interest rates, which curb gold’s appeal because the metal generally gives returns only through price gains.
Gold has almost erased gains made in January, when turmoil over Greece helped spur demand for a haven. Greece moved closer to winning an extension of financial aid after the head of the group of euro-region finance ministers said creditors were favorable toward the government’s package of new economic measures. Approval of plans based on a Feb. 20 agreement would offer a four-month reprieve for the country.
“For Greece, the market has already discounted the uncertainty that was prevalent at the start of the year,” and that’s pressuring gold, Jonathan Butler, a precious metals strategist at Mitsubishi Corp. in London, said by phone.
Gold for April delivery was little changed at $1,200.20 an ounce by 7:55 a.m. on the Comex in New York. It reached a seven- week low of $1,190.60 on Monday. Gold for immediate delivery fell 0.1 percent to $1,200.56 in London, according to Bloomberg generic pricing.
Futures trading volume was 56 percent below the average for the past 100 days for this time of day, according to data compiled by Bloomberg.
Holdings in gold-backed exchange-traded products climbed for a fourth day, rising 4 metric tons to 1,679.7 tons as of Monday, the highest since October, data compiled by Bloomberg show. Assets rebounded since mid-January, when they were at the lowest level since 2009.
Silver for May delivery added 0.2 percent to $16.335 an ounce in New York. Palladium was little changed at $788.10 an ounce. Platinum rose 0.2 percent to $1,165.30 an ounce, after dropping to the lowest since 2009 on Monday.
To contact the reporters on this story: Eddie van der Walt in London at evanderwalt@bloomberg.net; Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Nicholas Larkin
