Nov. 23 (Bloomberg) -- Gold and silver futures declined for the second time in three days as the dollar’s rally muted demand for precious metals as an alternative investment.
The euro fell to a six-week low against the greenback after Germany failed to get bids for 35 percent of its bonds in an auction today. The country sold 150,000 ounces of gold in October, Dow Jones reported, citing International Monetary Fund data. Political leaders are struggling to stem fiscal woes that have roiled Greece, Ireland, Portugal, Italy, Spain and France.
“Dollar strength and concerns about a systematic liquidity event are weighing on gold,” Scott Gardner, the chief investment officer at Verdmont Capital SA in Panama, said in an e-mail. “Also, rumors about central banks selling pressurized the market.”
Gold futures for December delivery declined 0.4 percent to settle at $1,695.90 an ounce at 1:46 p.m. on the Comex in New York. The metal has gained 19 percent this year.
“Gold prices are adjusting to the dollar value appreciation,” Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland, said in an e-mail. “Gold is perceived more from a currency aspect than from a hedge against systematic risks.”
Silver futures for March delivery fell 3.2 percent to $31.964 an ounce on the Comex. The price has climbed 16 percent in the past 12 months.
On the New York Mercantile Exchange, palladium futures for December delivery dropped 1.9 percent to $589.85 an ounce. Platinum futures for January delivery fell 0.8 percent to $1,558.30 an ounce.
--Editors: Patrick McKiernan, Steve Stroth
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