Bloomberg News

Gold Declines for Second Day as Greece Approves Austerity Plan

February 14, 2012

Feb. 13 (Bloomberg) -- Gold futures fell for the second straight session as Greek lawmakers approved austerity plans to win another international bailout, eroding the appeal of the precious metal as a haven.

Olli Rehn, the European Union’s economic and monetary affairs commissioner, signaled EU finance ministers will support Greece at a meeting starting Feb. 15. Global equities and the euro climbed. Italy met its target at a debt auction today, selling 12 billion euros ($16 billion) of bills as borrowing costs fell.

“We are seeing some profit-taking as people want to invest in riskier assets,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview.

Gold futures for April delivery declined 40 cents to settle at $1,724.90 an ounce at 1:41 p.m. on the Comex in New York. Earlier, the price gained as much as 0.6 percent as the dollar’s drop spurred demand for the metal as an alternative investment.

On Feb. 10, gold dropped 0.9 percent.

Silver futures for March delivery gained 0.4 percent to $33.722 an ounce on the Comex.

On the New York Mercantile Exchange, platinum futures for April delivery declined 0.6 percent to $1,649.70 an ounce, the third straight drop. Palladium futures for March delivery fell 0.6 percent to $698.55 an ounce.

--With assistance from Nicholas Larkin in London. Editors: Patrick McKiernan, Millie Munshi

To contact the reporters for this story: Debarati Roy in New York at droy5@bloomberg.net.

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net


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