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Gold Posts Longest Losing Streak Since May as Dollar Advances

Monday, 05 Aug 2013 02:52 PM

Gold futures fell for the fifth straight session Monday, capping the longest slump since May, as a stronger dollar crimped demand for the precious metal as an alternative investment.

The dollar rose as much as 0.4 percent to $1.3233 against the euro. Gold has fallen 22 percent this year as the greenback gained 4.2 percent against a gauge of 10 major trading partners. The metal has also retreated as some investors lost faith in bullion as a store of value amid concern that the Federal Reserve may slow the pace of its stimulus.

“The dollar’s strength against the euro is pushing gold lower,” David Lee, a vice president at Heraeus Precious Metals Management in New York, said in a telephone interview. “Some investors are on the sidelines as they want some clarity from the Fed.”

Gold futures for delivery in December fell 0.6 percent to settle at $1,302.40 an ounce at 1:50 p.m. on the Comex in New York.

Trading was 49 percent below the average for the past 100 days for this time of day, according to data compiled by Bloomberg.

The Fed said last week it would maintain its $85 billion monthly bond-buying program while warning that persistently low inflation could hamper the economic expansion. Fifty percent of the 54 economists in a Bloomberg survey last month expected the Fed to decide to pare bond purchases in September.

Silver futures for September delivery dropped 1 percent to $19.719 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for October delivery slipped 0.2 percent to $1,448.10 an ounce. Palladium futures for September delivery rose 0.8 percent to $735.20 an ounce.

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Gold futures fell for the fifth straight session Monday, capping the longest slump since May, as a stronger dollar crimped demand for the precious metal as an alternative investment.
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2013-52-05
 

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