Gold fell for a second day in New York as gains in European equities reduced demand for a haven. Palladium rose, after yesterday approaching a bear market.
European shares rebounded today, after eight days of losses. The Bloomberg Dollar Spot Index was little changed. The Federal Reserve should consider delaying the end of its bond-purchase program to halt a decline in inflation expectations, St. Louis Fed Bank President James Bullard said yesterday.
Gold erased this year’s gains earlier this month on the outlook for higher borrowing costs as the U.S. economy improves. Bullion has since rebounded as the Fed signaled a worldwide economic slowdown may delay interest-rate increases and as equities to commodities slid. Palladium fell this week on concern industrial demand for the metal will weaken.
“The precious complex is taking its lead from the dollar and the stock markets at the moment,” David Govett, head of precious metals at Marex Spectron Group in London, said in a note today. While “gold reacted mildly positively” to Bullard’s comments, Govett recommended selling bullion on any rallies to $1,250 an ounce, unless the dollar weakens further.
Gold for December delivery fell 0.3 percent to $1,237.60 an ounce by 7:24 a.m. on the Comex in New York. Bullion reached $1,250.30 on Oct. 15, the highest since Sept. 11, and is up 1.3 percent this week. Gold for immediate delivery lost 0.1 percent to $1,237.23 in London, according to Bloomberg generic pricing.
via Bloomberg
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