Gold retreated after the biggest advance in a month as investors weighed the outlook for U.S. monetary policy against increased geopolitical tensions around the world. Palladium dropped from a 13-year high.
Gold rebounded this year from the biggest annual drop in more than three decades, in part as tension between Russia and Ukraine, unrest in Iraq and violence in Israel boosted demand. A Malaysia Airlines jet was shot down over Ukraine yesterday, killing all 298 people on board. While the government in Kiev blamed the loss of the jet on pro-Russian rebels, the separatists denied the accusation. Britain said that the United Nations should probe the event.
Gold for August delivery traded $1,313.30 an ounce on the Comex in New York from $1,316.90 yesterday, heading for a weekly decline. Holdings in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, dropped yesterday.
Palladium for immediate delivery lost 0.4 percent to $881.13 an ounce, paring a fifth weekly advance that’s the longest since March. The metal rose to $889.75 yesterday, the highest level since February 2001, as the U.S. and European Union imposed further sanctions on Russian businesses over Ukraine. The country is the world’s largest producer.
Spot silver fell 0.5 percent to $21.0431 an ounce, after climbing 1.9 percent yesterday. Prices are set to drop for the first week in seven. Platinum declined 0.5 percent $1,494.90 an ounce, poised for the first weekly decrease in five weeks.
Bullion for immediate delivery fell 0.5 percent to $1,312.63 an ounce at 2:11 p.m. in Singapore, reversing gains, according to Bloomberg generic pricing. While the metal rallied 1.5 percent yesterday as the downing of a Malaysian passenger jet over Ukraine and Israel’s invasion of Gaza spurred haven demand, it’s still heading for the first weekly loss in seven.