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.
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.