Gold futures dropped for the second time in three days on signs of waning investor demand for the metal as an alternative asset.
Money managers have cut their wagers on a bullion rally in three of the past four weeks, and open interest in New York futures and options is near the lowest in five years, U.S. government data show. The Standard & Poor’s 500 Index of U.S. equities was little changed after closing above 2,000 yesterday for the first time.
“Money is moving into the equity market,” Blake Robben, a senior market strategist at Archer Financial Services in Chicago, said in a telephone interview. “The gold market is very choppy.” Gold futures for December delivery declined 0.1 percent to settle at $1,283.40 an ounce at 1:44 p.m. on the Comex in New York. Prices touched $1,273.40 on Aug. 21, the lowest since June.