Gold Swings After Biggest Gain in Week as Investors Cut Holdings Gold swung after advancing the most in a week as investors lowered holdings in the largest bullion-backed exchange-traded product and the U.S. dollar strengthened amid speculation the Federal Reserve will scale back stimulus. Spot gold climbed as much as 0.4 percent to $1,242.52 an ounce, after falling 0.3 percent, and traded at $1,240.03 by 9:33 a.m. in Singapore Prices climbed 1.1 percent yesterday, the most since July 1, as the Dollar Index declined from a three-year high. Assets in the SPDR Gold Trust fell 15 metric tons yesterday, the most in two weeks. Holdings stood at 946.96 tons, the least since February 2009. Gold has dropped 8.2 percent since June 19, when Fed Chairman Ben S. Bernanke said the central bank may reduce its $85 billion of monthly asset purchases this year and end the program in 2014 as the economy improves. Alcoa Inc. kicked off the U.S. earnings season yesterday, reporting earnings that beat analysts’ estimates and fueling increased optimism about growth. “As long as the dollar keeps its upward trajectory, it will be bearish for gold,” said Lv Jie, an analyst at Cinda Futures Co., a unit of one of four funds in China created to buy bad debt from banks. “If we continue to get positive news from the U.S., it will increase expectations that the Fed will reduce economic stimulus.” The Dollar Index, which measures the greenback against the currencies of six major U.S. trade partners, climbed 0.2 percent, paring yesterday’s 0.3 percent decline. Gold for August delivery rose 0.3 percent to $1,238.60 an ounce on the Comex in New York, extending yesterday’s 1.8 percent advance. Money managers increased their net-long positions in gold by 9.9 percent to 34,301 futures and options as of July 2, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts climbed 1.4 percent to 78,148, the second-highest on record. Silver for immediate delivery was little changed at $19.1101 an ounce, following yesterday’s 1.1 percent advance. Spot platinum rose 0.3 percent to $1,363.15 an ounce, after jumping 2.6 percent yesterday. Palladium was little changed at $697.55 an ounce, after rising 2.1 percent yesterday. Anglo American Platinum Ltd., the world’s largest producer, said about 5,600 workers went on strike at two mines in South Africa. Workers are protesting the suspension of union officials and also want the company to halt its job-cuts process, the company said yesterday.
Posted on: Tue, 09 Jul 2013 02:14:33 +0000
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