Gold at 7 Month Low on US Outlook; Silver Slips

by on September 11, 2014 3:18 pm BST

Gold slides to a seven-month low in New York as investors assessed the outlook for an improving U.S. economy. Platinum reached the lowest since February.

Prospects for higher borrowing costs in the U.S. and the European Central Bank’s announcement of more stimulus helped the Bloomberg Dollar Spot Index reach a 14-month high yesterday. Data this week may show U.S. retail sales improved. The Federal Reserve, which has been cutting bond buying, meets Sept. 16-17.

Gold for December delivery fell 0.1 percent to $1,243.50 by 7:57 a.m. on the Comex in New York after touching $1,237.80, the lowest since Jan. 30. Gold for immediate delivery lost 0.6 percent to $1,242.81 an ounce in London, according to Bloomberg generic pricing.

Futures trading volume was 33 percent above the average for the past 100 days for this time of day, data compiled by Bloomberg show. Gold’s 14-day relative-strength index was at 28.37 today. A drop to a level of 30 can indicate to traders studying technical charts that prices may be poised to rebound.

Silver for delivery in December slipped 0.7 percent to $18.79 an ounce in New York. It reached $18.645, the lowest since May 30. Holdings in silver-backed exchange-traded products rose to 19,897.5 metric tons yesterday, the highest since November.

Platinum for delivery in October lost 0.2 percent to $1,377.60 an ounce, after touching $1,370, the lowest since Feb. 4. There’s “value” in platinum below $1,400 and further declines are a buying opportunity, UBS AG wrote in a report today. The metal is mostly used in car catalytic converters, alongside palladium, and supply was cut this year amid a South African mine strike. Palladium for delivery in December was little changed at $848.50 an ounce.