Gold swung between gains and drops in New York as it headed for the first back-to-back quarterly losses in 12 years, as signs that the U.S. economy is recovering cut demand for the metal as a protection of wealth. Silver slid.
The dollar reached a four-month high versus the euro after data showed yesterday orders for U.S. durable goods climbed more than forecast in February and home prices increased in January the most since June 2006. Dallas Fed Bank President Richard Fisher said yesterday in Abu Dhabi that he favors tapering asset purchases as the U.S. economy improves.
“The U.S. appears the picture of stability and relative strength,” Xiao Fu, an analyst at Deutsche Bank AG in London, wrote today in a report. “This has, in our view, been a key contributor to the moribund performance of gold.”
Gold futures for June delivery were little changed at $1,596.80 an ounce by 8:08 a.m. on the Comex in New York. They gained and lost as much as 0.3 percent earlier today. Futures trading volume was 30 percent above the average in the past 100 days for this time of day. Gold for immediate delivery declined 0.2 percent to $1,596.67 in London.
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Dean Popplewell
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