Gold may fall in London
Wednesday, 26 May 2010
LONDON, May 25 (Bloomberg): Gold, little changed in London, may decline as some investors sell the metal to cover losses on other assets. Platinum, palladium and silver also fell.
The euro slid against the dollar after the International Monetary Fund urged Spain to do more to overhaul its ailing banks, adding to speculation that European financial institutions may face greater losses. All six industrial metals on the London Metal Exchange dropped, as did oil and global equities. Holdings in the biggest gold-backed exchange-traded fund rose to a record.
Gold is "vulnerable to further cash-generating selling in the short-term given the volatile swings across the broader financial markets," James Moore, an analyst at TheBullionDesk.com in London, wrote in a report. Increasing ETF holdings and coin and bar purchases continue to "highlight investor diversification towards safe-haven asset types and should limit the impact of long liquidation in gold."
Gold for immediate delivery lost $4.75, or 0.4 per cent, to $1,186.90 an ounce at 9:52 a.m. in London. Bullion for June delivery was 0.6 per cent lower at $1,186.80 on the Comex in New York.
The euro slid against the dollar after the International Monetary Fund urged Spain to do more to overhaul its ailing banks, adding to speculation that European financial institutions may face greater losses. All six industrial metals on the London Metal Exchange dropped, as did oil and global equities. Holdings in the biggest gold-backed exchange-traded fund rose to a record.
Gold is "vulnerable to further cash-generating selling in the short-term given the volatile swings across the broader financial markets," James Moore, an analyst at TheBullionDesk.com in London, wrote in a report. Increasing ETF holdings and coin and bar purchases continue to "highlight investor diversification towards safe-haven asset types and should limit the impact of long liquidation in gold."
Gold for immediate delivery lost $4.75, or 0.4 per cent, to $1,186.90 an ounce at 9:52 a.m. in London. Bullion for June delivery was 0.6 per cent lower at $1,186.80 on the Comex in New York.