Gold at $1307 with Eyes on Conflicts

Gold fell after the first back-to-back weekly declines since May as investors weighed the situation in Russia and Gaza with the health of the U.S. economy. Silver and palladium retreated.

Gold for immediate delivery decreased 0.2 percent to trade at $1,305.13 an ounce by 8:52 a.m. in Singapore, according to Bloomberg generic pricing. The metal climbed 1.1 percent on July 25, the most in a week. Prices dropped for a second week as global equities climbed and the dollar had its biggest weekly advance since March after data showing claims for U.S. jobless benefits shrank to an eight-year low.

Bullion sank 28 percent in 2013 on expectations the Federal Reserve will reduce stimulus, and rebounded 8.6 percent this year on fighting in Ukraine and the Middle East. Data today may show growth in U.S. services expanded for a ninth month before the Fed begins a policy meeting tomorrow. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, was little changed after strengthening 0.5 percent last week.

Bloomberg

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