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Gold Loses Its Weekly Gain as Dollar Strengthens; Silver Declines

by on October 10, 2014 1:13 pm BST
 

Gold reached a two-week high yesterday, rebounding from this year’s low set Oct. 6, after Fed minutes showed some policy makers were concerned about economic growth. An improving economy this year had added to the case for less U.S. stimulus. Rising interest rates reduce gold’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.

Gold fell, cutting the biggest weekly gain since June, as improving U.S. economic data strengthened the dollar and cut demand for a haven.

Gold futures for December delivery fell 0.1 percent to $1,223.50 an ounce by 7:33 a.m. on the Comex in New York. The metal for immediate delivery in London lost 0.1 percent to $1,223.25 an ounce.

Futures trading volume was 3 percent above the average for the past 100 days for this time of day. The commodity slid to $1,183.30 in New York on Oct. 6, the lowest since Dec. 31.

Money managers have cut their net-long position, or bets on higher prices, to the lowest this year, U.S. government data show. Holdings in gold-backed exchange-traded products are at a five-year low.

Silver futures for December delivery lost 0.6 percent to $17.31 an ounce in New York, after sliding as much as 1.2 percent. Platinum for delivery in January declined 1.3 percent to $1,261.50 an ounce. Palladium futures for December delivery fell 1.1 percent to $791.70 an ounce.