Gold traded near a 16-week low and headed for a monthly loss as signs of an improving U.S. economy and easing of tension in Ukraine curbed demand for a haven. Palladium was set for a fourth monthly advance.
Bullion is set for a 3.3 percent monthly drop after data showed this week U.S. durable goods orders unexpectedly rose in April and global equities reached the highest since 2007. Gold’s drop sent the metal’s 14-day relative-strength index to near the level of 30 that suggests a potential impending rebound to some analysts who study technical charts.
Russia has pulled back most of its troops from the border with Ukraine, according to a U.S. defense official, as government forces continued a campaign to wipe out separatist rebels in the former Soviet Republic’s east. A recent surge in fighting produced a new round of finger-pointing between the U.S. and Russia, the top supplier of palladium. That metal climbed to the highest since August 2011 this week as a mine strike in South Africa continued.
“Risk appetite has been improving,” said Sarah Xie, an analyst at Hong Kong-based Wing Fung Financial Group Ltd. “Investors are transferring their capital from gold to the stock market. Turmoil in Ukraine has eased.”