Gold fell for a seventh straight session, heading for the longest slump in more than a year, as U.S. equities near a record reduced demand for alternative investments.
The Standard & Poor’s 500 Index of stocks climbed to an all-time high for the third session in a row yesterday. Gold slumped 28 percent last year amid gains in equities and expectations that the Federal Reserve would reduce asset purchases as the economy recovers.
“There’s no safe-haven trade to be had on gold,” Tim Evans, the chief market strategist at Long Leaf Trading Group in Chicago, said in a telephone interview. “When we see gold try to make recoveries on an intraday basis, it’s met with an abundance of selling.”
Gold futures for August delivery slipped 0.2 percent $1,241.70 an ounce by 10:33 a.m. on the Comex in New York. The metal hasn’t posted seven straight losses since May 17, 2013.
Trading was 40 percent below the average for the past 100 days for this time, according to data compiled by Bloomberg.
Yesterday, the dollar rose to an eight-week high against a basket of 10 major currencies, further eroding the appeal of bullion as an alternative investment.