Gold declined in New York, extending a third weekly drop, as commodities fell and a stronger dollar curbed demand for bullion as an alternative investment.
The Standard & Poor’s GSCI gauge of 24 raw materials fell to the lowest in almost three months. The U.S. Dollar Index, a measure against six major trading partners, reached a six-week high as data showed Spanish unemployment climbed to a record in the third quarter. Gold’s third week of losses would be the longest losing run since September last year.
“It’s all related to current risk-off trading,” Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. “There’s a firmer U.S. dollar. Precious metals are part of the commodity complex,” and can decline when other commodities fall, he said.
Gold for December delivery fell 0.6 percent to $1,703.50 an ounce by 7:46 a.m. on the Comex in New York. It slid to $1,698.70 on Oct. 24, the lowest since Sept. 7, and is down 1.2 percent this week. Bullion for immediate delivery was 0.5 percent lower at $1,703.05 in London.
Gold reached a 10-month high of $1,798.10 on Oct. 5 as central banks from Europe to China to the U.S. pledged more stimulus to boost economies. Holdings in gold-backed exchange- traded products gained 0.6 metric ton to a record 2,585.1 tons yesterday, data compiled by Bloomberg show.
In the U.S., a Commerce Department report today may show that the world’s largest economy expanded at a 1.8 percent annual rate in the third quarter after growing at a 1.3 percent pace the prior quarter, according to the median forecast of economists in a Bloomberg News survey.
Silver for December delivery fell 1.1 percent to $31.74 an ounce and is set for a sixth weekly decline. Platinum for January delivery was down 1.2 percent at $1,550.60 an ounce. It slid 4 percent this week. Palladium for December delivery slipped 1.3 percent to $596.85 an ounce, extending the weekly drop to 4.2 percent, the most in a month.
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