Gold fell the most in a month in New York as equities climbed around the globe, curbing demand for haven assets.
The MSCI All-Country World Index of equities reached the highest since July 31 as the Stoxx Europe 600 Index headed for the biggest weekly gain this year and Hong Kong’s Hang Seng Index reached the highest since 2010. Gold demand fell 16 percent in the second quarter, led by declines in India and China, the World Gold Council said this week.
“Since demand for jewelry, bars and coins has proved very weak of late, overall demand for gold is again more dependent on investors,” Commerzbank AG said in a note today.
Gold for delivery in December fell 1.4 percent to $1,297.70 an ounce by 8:54 a.m. on the Comex in New York, the biggest drop since July 14. Prices climbed 0.4 percent the past three days.
Gold for immediate delivery dropped 0.8 percent to $1,303.77 an ounce in London, according to Bloomberg generic pricing.
Futures trading on Comex was about 12 percent lower than 100-day average for this time of the day, data compiled by Bloomberg show.
Platinum and palladium also dropped in New York. Silver futures dropped 1.9 percent to $19.535 an ounce. The first LBMA Silver Price to replace the fixing was $19.86 an ounce, unchanged from the last fixing yesterday.