Gold
declined for a second day, extending its biggest drop in almost three weeks, as
U.S. housing data backed the case for less stimulus amid speculation the price
rally this month may damp demand. Silver dropped.
Spot
gold fell as much as 0.5 percent to $1,315.30 an ounce, and traded at $1,320.02
at 8:56 a.m. in Singapore. Prices slid 1.7 percent yesterday, the most since
July 5, reversing an advance to $1,348.65, the highest since June 20.
Gold
has slumped 21 percent this year, set to end a 12-year bull run, as the
Bloomberg Dollar Index rose 4.5 percent amid speculation the U.S. Federal
Reserve may taper its bond-buying program as early as this year. Data yesterday
showed sales of new U.S. homes rose in June to a five-year high. The volume for
Shanghai’s benchmark spot bullion contract decreased to a two-week low of
11,073 kilograms yesterday.
Holdings
in the SPDR Gold Trust, the largest bullion-backed exchange-traded product,
stood unchanged at 929.76 metric tons yesterday, ending a six-day decline.
Assets have shrunk 4.1 percent in July, set for the smallest monthly drop since
March.
Gold
for December delivery traded at $1,320.50 an ounce on the Comex in New York
from $1,320.10 yesterday, when futures retreated 1.1 percent after touching a
one-month high of $1,349.20 in the previous session.
(Source: bloomberg)
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