Bloomberg News

Gold, Silver Fall as Haven Demand Ebbs Amid Optimism on Greece

February 19, 2012

Feb. 17 (Bloomberg) -- Gold futures fell for the first time in three days as progress on a bailout for Greece eroded the appeal of the precious metal as a haven. Silver also declined.

German, Italian and Greek leaders expressed optimism that an accord can be reached at a Brussels meeting of euro-area finance ministers on Feb. 20. The MSCI All-Country World Index of stocks rose as much as 0.9 percent, while crude oil headed for the biggest weekly gain this year. Gold erased gains of as much as 0.5 percent.

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

Gold futures for April delivery fell 0.1 percent to settle at $1,725.90 an ounce at 1:55 p.m. on the Comex in New York. The price rose 0.6 percent in the previous two days. The metal, little changed this week, has gained 10 percent this year.

Silver futures for March delivery dropped 0.5 percent to $33.216 an ounce. Earlier, the metal gained as much as 1 percent. This week, the price dropped 1.2 percent, the third straight decline. The commodity has climbed 19 percent this year.

On the New York Mercantile Exchange, platinum futures for April delivery rose 0.5 percent to $1,633.90 an ounce. The metal, down 1.6 percent this week, has advanced 16 percent in 2012.

Palladium futures for March delivery fell 1.2 percent to $688.10. The price, down 2.1 percent this week, has climbed 4.9 percent in 2012.

--Editors: Patrick McKiernan, Thomas Galatola

To contact the reporter on this story: 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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