Gold moves towards 2-week low on dollar’s rebound

image  Friday, bullion hovered near 2-week lows on as a recovery in the dollar dulled bullion’s demand as a currency hedge while investors were becoming wary of speculative long positions building in futures.

Spot gold gained 0.2% hitting $995.45 an ounce at about of 3:10 GMT, compared to New York’s notional close of $993.75. Currently, spot gold is set for a weekly drop of about 1%, after touching a two-week low on Thursday to close below $1,000 for the first time in nearly two weeks.

Sluggish stocks and falling oil prices to 8-week lows on worries about the economy also took away some of gold’s attractiveness as a hedge against inflation.
Some traders claim that notably slow growth in gold-backed exchange-traded funds compared to the market’s rally to 18-month highs suggested investor demand may be peaking, while others expected slack jewellery demand from India, the world’s largest consumer of gold.

Tokyo foreign securities firm analyst said investors, who were increasingly expanding their gold purchases through ETFs recently, were drawing money out as stocks faltered.

US gold futures for December delivery GCZ9 lost 0.1% at $997.0 an ounce, compared to $998.90 an ounce on the COMEX division of New York Mercantile Exchange.

The contract hit an intraday low of $991.30 on Thursday, its weakest since September,10. Futures are also set for a weekly decline of about 1% currently.

The SPDR Gold Trust GLD, said its holdings fell to 1,094.107 tonnes as of Sepember, 24, losing 0.7% from 1,101.735 tonnes the previous business day. It was the biggest fall in about two months.
Thus, the following prices were seen at the metal market at about 3:08 GMT:

  Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 996.15 2.40 +0.24 13.18
Spot Silver 16.15 -0.03 -0.19 42.67
Spot Platinum 1292.50 -5.00 -0.39 38.68
Spot Palladium 291.50 0.00 +0.00 57.99
TOCOM Gold 2914.00 -52.00 -1.75 13.25 40604
TOCOM Platinum 3783.00 -97.00 -2.50 42.65 13297
TOCOM Silver 471.30 -21.20 -4.30 47.60 645
TOCOM Palladium 843.00 -26.00 -2.99 53.27 314
TOCOM prices are in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices are in $ per ounce.


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