Gold futures fell the most in more than two weeks after global economic concerns eased, crimping demand for the precious metal as a haven.
Global holdings in exchange-traded products backed by gold yesterday extended a slump to a five-year low. A manufacturing index in the euro area unexpectedly rose in October, while Spain’s economy showed signs of a further recovery. In the U.S., the four-week average of jobless claims dropped to a 14-year low, government data showed. The dollar rose to a two-week high against a basket of 10 currencies.
Gold fell to a one-week low as equities rebounded and inflation remained muted. On Oct. 6, the metal slumped to the cheapest this year. The price then climbed as much as 6.1 from the low after the Federal Reserve cited slowing foreign economies as a risk to the U.S. That prompted some analysts to push back estimates for an increase in interest rates.
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