Gold traded near the lowest price in more than two weeks on speculation central banks will refrain from adding more stimulus to bolster global growth.
Bullion for immediate delivery was little changed at $1,378.46 an ounce at 8:40 a.m. in Singapore. Prices touched $1,366.19 yesterday, the lowest since May 23. Gold for August delivery was little changed at $1,377.80 an ounce on the Comex.
The Bank of Japan yesterday held back from expanding its tools to rekindle inflation and stoke growth, sticking with an April pledge to increase the monetary base by 60 trillion yen to 70 trillion yen a year. Federal Reserve Chairman Ben S. Bernanke said last month that the central bank could rein in its $85 billion monthly bond purchases if the U.S. employment outlook showed a sustainable improvement.
“It’s the expectations of QE having a limited time horizon,” said David Lennox, an analyst at Fat Prophets in Sydney, referring to quantitative easing. “The market is fixated on the Fed.”
The U.S. central bank will reduce its purchases to $65 billion a month at its October meeting, according to the median estimate in a Bloomberg survey of economists last week. Gold is down 18 percent this year as some investors lost faith in the precious metal as a store of value, potentially ending a 12-year bull run.
Silver for immediate delivery gained 0.3 percent to $21.7355 an ounce after losing as much as 0.4 percent. Spot platinum was little changed at $1,478.65 an ounce, while palladium was also little changed at $752.60 an ounce.
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