Gold
declined on speculation a 2.3 percent advance in the past two days may damp
demand as holdings in the biggest bullion-backed exchange-traded product
extended losses.
Spot
gold lost as much as 0.4 percent to $1,246.76 an ounce, and traded at $1,248.41
by 8:58 a.m. in Singapore, snapping two days of gains. Assets in the SPDR Gold
Trust fell to 939.75 metric tons yesterday, the least since February 2009, data
on the SPDR website showed.
Gold
has dropped 8.7 percent since Federal Reserve Chairman Ben S. Bernanke told
reporters after the Federal Open Market Committee’s June 18-19 meeting that the
central bank may reduce its $85 billion of monthly asset purchases this year
and end the program in 2014 as the economy improves. Minutes of that meeting
will be released today and Bernanke will speak at a National Bureau of Economic
Research conference.
Bullion
for August delivery traded at $1,246.20 an ounce on the Comex in New York from
$1,245.90 yesterday when it rose 0.9 percent as accelerating inflation in China
boosted the metal’s appeal as a hedge, while demand rose for jewelry, coins and
bars.
(Source: Bloomberg)
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