Gold fell for a second day, extending the first weekly loss in seven, as the outlook for higher U.S. borrowing costs offset demand for a haven amid unrest in Ukraine and Gaza. Palladium was near a 13-year high.
Bullion for immediate delivery retreated as much as 0.3 percent to $1,307.52 an ounce and traded at $1,308.53 by 9:32 a.m. in Singapore, according to Bloomberg generic pricing. The metal last week completed a 2.1 percent decline to halt the longest run of weekly gains since March. Palladium added as much as 0.2 percent to $883.17 an ounce on concern that supplies may be disrupted from Russia, the largest producer.
Gold last year had its biggest annual drop in more than three decades on expectations the Federal Reserve will start to reduce monetary stimulus. The U.S. and European Union last week tightened sanctions against Russia, which is facing increasing pressure to respond to claims that a Malaysia Airlines jet was downed July 17 using a missile from the country. Israel’s ground offensive in Gaza yesterday entered its deadliest phase.