Gold declined in New York, with the
metal almost erasing this year’s gains as the outlook for higher
U.S. interest rates amid an improving economy curbs demand.
Platinum dropped to a five-year low.
Gold fell 0.7 percent this week, cutting its 2014 increase to 0.4 percent. The Bloomberg Dollar Spot Index, which reached a four-year high this week, rose before a U.S. report that economists say will show employers added the most jobs in three months. Improving U.S. data has added to speculation that the Federal Reserve will raise interest rates next year.
An accelerating U.S. economy means investors are shunning the metal even after the U.S. expanded sanctions against Russia and stepped up its campaign against Islamic State. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.
“The Fed’s tightening policy, the end of tapering obviously at the next meeting and the start of rate hikes next year is creating significant head winds,” Ivan Szpakowski, a Hong Kong-based analysts at Citigroup Inc., said in an interview on Bloomberg Television today. Prices may be supported if macroeconomic concerns and geopolitical tensions flare, he said.
Gold for December delivery fell 0.6 percent to $1,208.20 an ounce on the Comex in New York by 7:22 a.m. It reached $1,204.30 on Sept. 30, the lowest since Jan. 2. Gold for immediate delivery dropped 0.5 percent to $1,208.01 in London, according to Bloomberg generic pricing.
U.S. employers added 215,000 jobs in September, up from 142,000 in August, according to the median estimate of economists surveyed by Bloomberg News before Labor Department figures due today.
Traders saw a more than 70 percent chance the Fed will raise its target for overnight lending between banks by its September 2015 meeting, futures data compiled by Bloomberg show.
Holdings in gold-backed exchange-traded products are at the lowest in five years. They fell 2.3 metric tons to 1,679.5 tons yesterday, data compiled by Bloomberg show.
Silver for delivery in December fell 0.3 percent to $17 an ounce in New York. Holdings in silver ETPs rose 124.3 tons yesterday, the most since May, to a record 20,182.2 tons, data compiled by Bloomberg show.
Platinum for January delivery slipped 1.6 percent to $1,250.40 an ounce. It slid to as low as $1,241.80 today, the lowest since September 2009. Prices slipped 3.9 percent this week, and a fifth weekly decline would be the longest stretch since December.
“Weak gold prices have also weighed on platinum,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “The technical momentum is lower and we believe the fundamental argument, while sound in the long term, will not necessarily bring buyers in immediately.”
Gold fell 0.7 percent this week, cutting its 2014 increase to 0.4 percent. The Bloomberg Dollar Spot Index, which reached a four-year high this week, rose before a U.S. report that economists say will show employers added the most jobs in three months. Improving U.S. data has added to speculation that the Federal Reserve will raise interest rates next year.
An accelerating U.S. economy means investors are shunning the metal even after the U.S. expanded sanctions against Russia and stepped up its campaign against Islamic State. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.
“The Fed’s tightening policy, the end of tapering obviously at the next meeting and the start of rate hikes next year is creating significant head winds,” Ivan Szpakowski, a Hong Kong-based analysts at Citigroup Inc., said in an interview on Bloomberg Television today. Prices may be supported if macroeconomic concerns and geopolitical tensions flare, he said.
Gold for December delivery fell 0.6 percent to $1,208.20 an ounce on the Comex in New York by 7:22 a.m. It reached $1,204.30 on Sept. 30, the lowest since Jan. 2. Gold for immediate delivery dropped 0.5 percent to $1,208.01 in London, according to Bloomberg generic pricing.
Trading Volume
Futures trading volume was 22 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg show.U.S. employers added 215,000 jobs in September, up from 142,000 in August, according to the median estimate of economists surveyed by Bloomberg News before Labor Department figures due today.
Traders saw a more than 70 percent chance the Fed will raise its target for overnight lending between banks by its September 2015 meeting, futures data compiled by Bloomberg show.
Holdings in gold-backed exchange-traded products are at the lowest in five years. They fell 2.3 metric tons to 1,679.5 tons yesterday, data compiled by Bloomberg show.
Silver for delivery in December fell 0.3 percent to $17 an ounce in New York. Holdings in silver ETPs rose 124.3 tons yesterday, the most since May, to a record 20,182.2 tons, data compiled by Bloomberg show.
Platinum Slips
Palladium for December delivery slid 0.8 percent to $762.25 an ounce, after reaching $762 today, the lowest since April 7. It’s down for a fifth week in the longest such run of losses since April 2012.Platinum for January delivery slipped 1.6 percent to $1,250.40 an ounce. It slid to as low as $1,241.80 today, the lowest since September 2009. Prices slipped 3.9 percent this week, and a fifth weekly decline would be the longest stretch since December.
“Weak gold prices have also weighed on platinum,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “The technical momentum is lower and we believe the fundamental argument, while sound in the long term, will not necessarily bring buyers in immediately.”
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