Gold futures fell for a second day as signs of economic growth in China and Europe curbed demand for the precious metal.
A Purchasing Managers Index for the manufacturing industry in the euro area rose to 50.7 in October from 50.3, London-based Markit Economics said today. Another report showed Chinese factory activity increased. Holdings in exchange-traded products backed by gold dropped 0.6 percent this week, according to data compiled by Bloomberg.
“Without seeing a pickup in ETP holdings, the near-term outlook still looks like one where the price action will be driven by short-term speculative and technical decisions,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a report.
Gold for December delivery declined 0.8 percent to $1,235.80 an ounce by 8:01 a.m. on the Comex in New York. Prices fell 0.5 percent yesterday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.