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(Corrects fourth paragraph to show futures fell, not rose.)
Oct. 19 (Bloomberg) -- Gold futures declined for the third straight day on speculation that France and Germany are nearing an accord to boost the size a European rescue fund in the sovereign-debt crisis, eroding demand for the metal as a haven.
The Guardian newspaper reported the two nations support increasing the size of the 440 billion-euro ($607 billion) European Financial Stability Facility to 2 trillion euros before a summit this weekend. Gold has dropped 14 percent from a record $1,923.70 an ounce on Sept. 6 as Europe’s fiscal woes drove equities and commodities lower.
“There is a lack of conviction in the market” for gold, Adam Klopfenstein, a senior market strategist at MF Global Holdings Inc. in Chicago, said in a telephone interview. “People are awaiting more news from Europe.”
Gold futures for December delivery fell 0.4 percent to settle at $1,647 at 1:52 p.m. on the Comex in New York, extending this week’s decline to 2.1 percent.
France and Germany are engaged in “intensive talks” on bolstering the rescue fund, said Steffen Seibert, German Chancellor Angela Merkel’s chief spokesman.
Silver futures for December delivery declined 1.7 percent to $31.277 an ounce. The metal has dropped 37 percent from a 31- year high of $49.845 on April 25.
On the New York Mercantile Exchange, platinum futures for January delivery fell 1.1 percent to $1,523.10 an ounce. Palladium futures for December delivery slumped 1.9 percent to $608.40 an ounce.
--Editor: Patrick McKiernan
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