Gold
dropped as investor holdings contracted for an eighth week in the worst run
since 2004 and the dollar climbed, curbing demand for the metal as an
alternative asset.
Gold
for immediate delivery fell as much as 0.3 percent to $1,576.11 an ounce and
traded at $1,577.35 at 8:50 a.m. in Singapore. Earlier, the metal rose to
$1,583.20, the highest price since April 2, extending a 1.7 percent rally on
April 5 after U.S. jobs data missed expectations, bolstering the case for
prolonged central-bank stimulus.
Holdings
in ETPs dropped 0.6 percent to 2,434.436 metric tons last week, the lowest
level since August, according to data compiled by Bloomberg. Investors sold a
net 0.9 ton on April 5 even after data showed U.S. payrolls had the smallest
gain since June. The Dollar Index (DXY), a gauge against six major
counterparts, rallied as much as 0.3 percent today as the yen dropped to the lowest
level since 2009.
“We’ve
seen gradual rise in U.S. currency because there’s really nowhere else to go,”
said David Lennox, an analyst at Fat Prophets in Sydney. “The U.S. economy
looks in pretty good shape compared to everyone else, that’s pushing the currency
up and having a detrimental impact on gold.”
International
Monetary Fund Managing Director Christine Lagarde said yesterday that a
“substantial portion” of the global economy appears better now than a year ago.
Holdings of gold in ETPs have dropped 7.5 percent this year, and prices slumped
to a 10-month low on April 4, nearing a bear market.
Bullion
for June delivery was little changed at $1,577.90 an ounce on the Comex after
rallying 1.5 percent on April 5.
(Source: Bloomberg)
very good.....
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