Gold traded near the lowest in more than a week in New York as investors weighed reduced demand for a haven against signs of more physical purchases.
Gold fell to a one-week low of $1,226.30 an ounce on Oct. 23 and declined 0.6 percent last week as global equities and the dollar strengthened. In top buyer China, volumes for the benchmark spot contract on the Shanghai Gold Exchange were near a two-week high, the latest data show.
Equities reached the highest in two weeks today as none of Europe’s largest banks failed European Central Bank-led stress tests. The Federal Reserve is expected to end monthly asset purchases at its Oct. 28-29 meeting. Traders have pushed back estimates for when the Fed will raise U.S. interest rates as policy makers expressed concern that the economy may be at risk from a global slowdown.