Gold falls as dollar, scrap sales make up for investment buying
Wednesday, 28 April 2010
LONDON, April 27 (Bloomberg): Gold declined as gains by the dollar may curb demand at a time of increased metal sales. Palladium dropped the most in more than a week.
Sales of old jewelry and other scrap gold have increased at the same time as demand from investors gained, according to Walter de Wet, an analyst at Standard Bank Plc in London. Investors amassed a record amount of bullion yesterday in the SPDR Gold Trust, the biggest fund holding the metal.
"Investment demand is there but we're also seeing decent physical selling" of scrap metal from Asia, de Wet said. "Investment demand must be much bigger than people wanting to sell old gold" for prices to advance.
Gold for immediate delivery dropped $1.15, or 0.1 per cent, to $1,152.35 an ounce at 11:14 a.m. in London. Gold futures for delivery in June fell 0.1 per cent to $1,152.70 on the Comex in New York.
Assets in the SPDR Gold Trust rose 6.09 metric tons to a record 1,146.22 tons yesterday, according to figures on the company's Web site. Prices will probably average a record $1,200 an ounce in the third quarter, de Wet said. Gold rose to an all- time high of $1,226.56 on Dec. 3.
The dollar rose 0.6 per cent against the euro on speculation Greece won't get a loan quickly enough to avoid default on its bonds.
Gold in the morning fixing, used by some mining companies to sell production, fell to $1,152.25 an ounce from yesterday's afternoon fixing of $1,154.50 an ounce.
Palladium dropped as much as $20.40, or 3.6 per cent, to $544.60 an ounce, the biggest retreat since April 16. Investment demand for the metal in the ETF Securities Ltd. exchange-traded product in the US was at 669,059 ounces on April 23, unchanged for a third day, according to information on the company's Web site.
Sales of old jewelry and other scrap gold have increased at the same time as demand from investors gained, according to Walter de Wet, an analyst at Standard Bank Plc in London. Investors amassed a record amount of bullion yesterday in the SPDR Gold Trust, the biggest fund holding the metal.
"Investment demand is there but we're also seeing decent physical selling" of scrap metal from Asia, de Wet said. "Investment demand must be much bigger than people wanting to sell old gold" for prices to advance.
Gold for immediate delivery dropped $1.15, or 0.1 per cent, to $1,152.35 an ounce at 11:14 a.m. in London. Gold futures for delivery in June fell 0.1 per cent to $1,152.70 on the Comex in New York.
Assets in the SPDR Gold Trust rose 6.09 metric tons to a record 1,146.22 tons yesterday, according to figures on the company's Web site. Prices will probably average a record $1,200 an ounce in the third quarter, de Wet said. Gold rose to an all- time high of $1,226.56 on Dec. 3.
The dollar rose 0.6 per cent against the euro on speculation Greece won't get a loan quickly enough to avoid default on its bonds.
Gold in the morning fixing, used by some mining companies to sell production, fell to $1,152.25 an ounce from yesterday's afternoon fixing of $1,154.50 an ounce.
Palladium dropped as much as $20.40, or 3.6 per cent, to $544.60 an ounce, the biggest retreat since April 16. Investment demand for the metal in the ETF Securities Ltd. exchange-traded product in the US was at 669,059 ounces on April 23, unchanged for a third day, according to information on the company's Web site.