Gold declined in New York, trimming a monthly advance, as some traders booked profits after prices climbed to a 17-week high and amid speculation a weaker yuan may hurt demand from China.
Gold is the third-biggest gainer, after coffee and lean hogs, in the Standard & Poor’s GSCI gauge of 24 commodities this year on speculation haven demand increased after U.S. data that missed estimates added to concern the recovery may be faltering just as the Federal Reserve tapers bond buying. The precious metal is up 10 percent in 2014. China’s yuan slid the most on record and India raised the benchmark gold import price.
“Gold has been moving higher in terms of all currencies in recent days and weeks but it has gotten a bit over-bought in the shortest of terms,” economist Dennis Gartman said in his daily report today. Weakness in gold is “a gathering of gold’s forces before it moves higher again,” he wrote.
Gold for April delivery slid 0.3 percent to $1,328.20 an ounce by 7:32 a.m. on the Comex in New York on trading volumes that were 11 percent lower than the average for the past 100 days for this time of day. Bullion for immediate delivery fell 0.2 percent to $1,328.17 an ounce in London. Prices are up 6.8 percent this month, the most since July, and reached a 17-week high of $1,345.46 on Feb. 26.