Gold Back to $1227 as Demand Dries Up

Gold retreated for a second day on concern prices that climbed to a four-week high may deter purchases as the euro weakened against the dollar on signs the region’s economy is faltering.

Gold for immediate delivery fell as much as 0.4 percent to $1,227.79 an ounce, and traded at $1,228.18 at 8:53 a.m. in Singapore, according to Bloomberg generic pricing. The metal rose to $1,238.30 yesterday, the highest since Sept. 17, before ending lower as oil slumped to a two-year low, damping demand from investors who view gold as a hedge against inflation.

The Bloomberg Dollar Spot Index advanced for a second day as the euro slid against the greenback after Germany cut its growth outlook and investor confidence in Europe’s largest economy fell for a 10th month. Bullion rallied from this year’s low of $1,183.24 on Oct. 6 on speculation the Federal Reserve may delay interest-rate increases amid slowing global growth.

Bloomberg

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