Gold ends longest advance in 17 months on investor sales, euro decline
Thursday, 3 June 2010
LONDON, June 2 (Bloomberg): Gold dropped for the first time in eight days in London as some investors sold the metal after its longest advance since December 2008 and as the euro's decline against the dollar stalled.
The metal gained 4.1 per cent in the seven days through yesterday, reaching a two-week high and trading within 1.7 per cent of the record last month. The euro was little changed against the dollar after slipping yesterday to its weakest level in four years.
"In the last two weeks gold has seen a really significant rebound" and that may spur some investor sales, said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. "The stability of the euro against the dollar is of course not supporting gold."
Gold for immediate delivery lost $5.72, or 0.5 per cent, to $1,219.93 an ounce at 9:27 a.m. in London. The metal reached $1,228.85 yesterday. Bullion for August delivery was 0.4 per cent lower at $1,221.50 on the Comex in New York.
Gold climbed to a record $1,249.40 an ounce on May 14 on concern European measures to cut deficits and contain sovereign debt risks will curb growth in the region. The metal reached all-time highs in euros, pounds and Swiss francs in the past month, while gold-backed exchange-traded fund holdings surged.
The metal gained 4.1 per cent in the seven days through yesterday, reaching a two-week high and trading within 1.7 per cent of the record last month. The euro was little changed against the dollar after slipping yesterday to its weakest level in four years.
"In the last two weeks gold has seen a really significant rebound" and that may spur some investor sales, said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. "The stability of the euro against the dollar is of course not supporting gold."
Gold for immediate delivery lost $5.72, or 0.5 per cent, to $1,219.93 an ounce at 9:27 a.m. in London. The metal reached $1,228.85 yesterday. Bullion for August delivery was 0.4 per cent lower at $1,221.50 on the Comex in New York.
Gold climbed to a record $1,249.40 an ounce on May 14 on concern European measures to cut deficits and contain sovereign debt risks will curb growth in the region. The metal reached all-time highs in euros, pounds and Swiss francs in the past month, while gold-backed exchange-traded fund holdings surged.