Bloomberg News

Gold Futures Decline From Two-Week High Ahead of Slovakia Vote

October 11, 2011

Oct. 11 (Bloomberg) -- Gold futures fell from a two-week high as traders awaited a vote by Slovakian lawmakers on the euro region’s retooled bailout package.

Slovakia is the only country that hasn’t agreed to the enhanced European bailout fund. Gold prices surged to a record $1,923.70 an ounce on Sept. 6 as Europe’s escalating debt crisis boosted demand for a haven. The metal then tumbled, falling 11 percent last month, as increasing risks to global growth prompted investors to sell most commodities.

“It’s not clear yet whether gold will behave like a commodity or as a safe-haven investment once the bailout package is announced,” Jon Nadler , an analyst at Kitco Inc. in Montreal, said in telephone interview.

Gold futures for December delivery declined 0.6 percent to settle at $1,661 at 1:58 p.m. on the Comex in New York. Earlier, the metal reached $1,686.70, the highest since Sept. 23.

Prices also fell today as a stronger dollar eroded demand for the metal as an alternative. The greenback rose as much as 0.6 percent against a basket of six major currencies.

“We are seeing profit taking ahead of the Slovakia voting,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “The strength in dollar is also pushing gold down.”

Silver futures for December delivery rose 0.1 percent to $31.998 an ounce. The metal climbed 3.2 percent yesterday.

On the New York Mercantile Exchange, platinum futures for January delivery dropped 0.4 percent to $1,518.80 an ounce, declining for the second time in three sessions. Palladium futures for December delivery retreated 1.6 percent to $604.30 an ounce.

--With assistance from Nicholas Larkin in London. Editors: Millie Munshi, Steve Stroth

To contact the reporters on this story: Debarati Roy in New York at

To contact the editor responsible for this story: Steve Stroth at

The Good Business Issue
blog comments powered by Disqus