Gold declined in New York on investor sales after the biggest rally in almost three weeks.
Futures jumped 1.1 percent yesterday, the most since Jan. 10, on demand for a haven with a shrinking U.S. economy. Growth will bounce back in the current quarter, economists at JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley say.
“Gold lacks a convincing catalyst near term to take it convincingly higher and instead remains susceptible to opportunistic selling,” Xiao Fu, an analyst at Deutsche Bank AG, said in a report dated today.
Gold futures for April delivery dropped 0.3 percent to $1,676.40 an ounce at 7:01 a.m. on the Comex in New York. Prices are up less than 0.1 percent this month, after three months of declines.
Platinum futures fell 0.8 percent to $1,675.50 an ounce and are heading for an 8.6 percent gain for January, the biggest monthly advance in a year. Palladium dropped 1.8 percent to $737.75 an ounce, narrowing this month’s gain to 4.9 percent.
Silver for March delivery declined 0.4 percent to $32.035 an ounce and is up 6 percent for January.
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.