Gold traded below a three-month high on signs that the rally damped physical demand and as investors assessed the outlook for U.S. borrowing costs before Federal Reserve Chair Janet Yellen speaks today. Platinum fell from the highest since September and palladium snapped a seven-day rally.
Bullion for immediate delivery traded at $1,325.39 an ounce at 11:06 a.m. in Singapore from $1,326.46 yesterday, when the metal climbed to $1,332.33, the highest level since March 24, according to Bloomberg generic pricing. Gold’s 14-day relative-strength index was near the level of 70 that suggests to some traders who study technical charts that prices may retreat.
Yellen will give a speech at the International Monetary Fund after data yesterday showed a gauge of U.S. manufacturing rose less than economists forecast, sending the Bloomberg Dollar Spot Index lower for a fifth day. In China, the world’s largest consumer, volumes for the benchmark spot contract on the Shanghai Gold Exchange fell to 8,569 kilograms yesterday, the least since June 6.