Gold fell from a three-week high in New York on speculation physical demand may slow after prices rallied on bets for prolonged U.S. stimulus and a weaker dollar.
Bullion futures reached $1,352.30 an ounce yesterday, the highest since Sept. 30, and climbed as much as 8.1 percent since Oct. 15. The Bloomberg U.S. Dollar Index, a measure versus 10 currencies, was little changed near an eight-month low after data showed yesterday more Americans than forecast filed jobless-benefit claims and manufacturing growth slowed.
Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on speculation the Fed will slow debt purchases as the economy strengthens. The central bank unexpectedly refrained last month from slowing the $85 billion of monthly bond-buying and policy makers will keep the buying level until March, according to economists in an Oct. 17-18 Bloomberg survey.
via Bloomberg
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Alfonso Esparza
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