June 7 (Bloomberg) -- Gold futures fell from a five-week high as European debt concerns eased, eroding the appeal of the precious metal as a haven.
The euro reached a one-month high against the dollar after the European Central Bank signaled its approval of Greek bond rollovers. Yesterday, gold reached $1,555 an ounce, the highest since advancing to a record $1,577.40 on May 2.
“The risk premium has come out of gold,” said Matt Zeman, a strategist at Kingsview Financial in Chicago. “People are not quite as nervous about Greece.”
Gold futures for August delivery fell $3.20, or 0.2 percent, to settle at $1,544 at 1:47 p.m. on the Comex in New York. The decline pared this year’s gain to 8.6 percent.
Gold’s losses may continue to accelerate after the metal failed to rally toward a record yesterday, said Tom Pawlicki, an analyst at MF Global Ltd. in Chicago.
“The immediate focus of the market will be on yesterday’s bearish reversal,” Pawlicki said. “The reversal was made after the market broke out to a new one-month high, which suggests that the breakout was rejected.”
Still, the price may reach $1,650 over the next few months, Pawlicki said.
The Federal Reserve has said it will stop buying Treasuries as part of its so-called quantitative easing program at the end of the month.
“There are still lingering questions on whether the Fed will continue to pump money into the financial system, which is negative for the dollar and positive for gold,” said Zeman of Kingsview.
Silver futures for July delivery rose 26.4 cents, or 0.7 percent, to $37.046 an ounce on the Comex.
Palladium futures for September delivery climbed $10.80, or 1.4 percent, to $809.50 an ounce on the New York Mercantile Exchange. Earlier, the price rose as much as 1.6 percent to a three-month high of $811.80.
Platinum futures for July delivery rose $9.50, or 0.5 percent, to $1,830.70 an ounce on the Nymex.
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