Bloomberg News

Gold Falls for First Time in Three Days After Dollar Rebounds

November 07, 2011

Nov. 4 (Bloomberg) -- Gold futures declined for the first time in three days as the dollar’s rebound curbed demand for the precious metal as an alternative investment.

The greenback climbed as much as 0.8 percent against a basket of six major currencies. German Chancellor Angela Merkel said that officials at a Group of 20 meeting failed to agree on boosting the resources of the International Monetary Fund, crimping plans to get more aid to stem Europe’s debt crisis.

“It’s the dollar that’s keeping gold quiet today,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “People want to hear something concrete from the G-20 leaders.”

Gold futures for December delivery declined 0.5 percent to settle at $1,756.10 an ounce at 1:38 p.m. on the Comex in New York. The metal still rose 0.5 percent this week, the second straight gain.

“Gold has done well, and people are happy to take profit,” Bernard Sin, the head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said in a telephone interview. “There’s uncertainty about Europe, and the market is still concerned” that the global economy will falter, he said.

Prices have climbed 24 percent this year, reaching a record $1,923.70 on Sept. 6.

Silver futures for December delivery fell 1.2 percent to $34.084 an ounce in New York. The metal slumped 3.4 percent this week, the second decline in three weeks.

On the New York Mercantile Exchange, platinum futures for January delivery fell 1.1 percent to close at $1,629.30 an ounce, dropping for the first time in three days. Palladium futures for December delivery fell 1 percent to $655.30 an ounce, retreating 2 percent this week.

--Editors: Millie Munshi, Daniel Enoch

To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Debarati Roy in New York at droy5@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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