June 3 (Bloomberg) -- Gold may fall for a second day in New York on speculation some investors will sell the metal after prices climbed near a record.
Gold futures this week rose to within 1.7 percent of a record set last month. European Union and International Monetary Fund officials will today complete a review of Greece’s plan for 78 billion euros ($113 billion) in asset sales and austerity measures as they prepare the nation’s second bailout in little more than a year. Economist Dennis Gartman said he cut his gold position by a half this morning.
“We rose too far, too fast,” Jim Pogoda, an investor in Summit, New Jersey, and a former precious-metals trader for Mitsubishi International Corp., said in an e-mail. Still, “the bullish arguments - euro-zone debt fears, continued unrest and potential for spreading in the Middle East and north Africa region, and poor long-term prospects for the dollar - remain intact.”
Gold for August delivery fell $2.50, or 0.2 percent, to $1,530 an ounce by 7:58 a.m. on the Comex in New York. The metal is down 0.5 percent this week. Immediate-delivery gold was 0.3 percent lower at $1,529.47 in London.
Bullion declined to $1,531 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,539.50 at yesterday’s afternoon fixing. Fifteen of 17 traders, investors and analysts surveyed by Bloomberg, or 88 percent, said bullion will rise next week. One predicted lower prices and one was neutral.
“We fear that yesterday’s sharp break that took gold down to $1,520 in the veritable twinkling of an eye was the harbinger of even more severe weakness that might soon develop,” said Gartman, editor of the Suffolk, Virginia-based Gartman Letter. “We fear the possibility that gold might swiftly fall to $1,480 or so over the course of the next few days or weeks.”
Concern about faster inflation, Europe’s debt crisis, a weakening dollar and fighting in Libya boosted gold to a record $1,577.40 on May 2. Prices are up 7.6 percent in 2011 after climbing the past 10 years, the longest run of gains in at least nine decades in London.
The dollar was little changed near a four-week low against six major currencies before a report that may show U.S. employers probably hired fewer workers in May. Manufacturing in China, Europe and the U.S. slowed last month.
Silver for July delivery fell 1.7 percent to $35.585 an ounce in New York. Palladium for September delivery rose 0.2 percent to $772 an ounce. Platinum for July delivery was down 0.2 percent at $1,814.80 an ounce.
--With assistance from Kyoungwha Kim in Singapore. Editors: Sharon Lindores, Nicholas Larkin
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