Gold
headed for a third weekly decline after some investors reduced holdings of the
metal as signs the U.S. economic recovery is gaining momentum spurred
speculation that the Federal Reserve may pare stimulus.
Gold
for immediate delivery traded at $1,560.05 an ounce at 9:18 a.m. in Singapore
from $1,561.45 yesterday, when it dropped to a one-week low of $1,553.65.
Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by
bullion, shrank to 1,181.42 metric tons yesterday, the least since May 2010.
Assets have declined 12.5 percent in 2013 as prospects for the recovery sent
U.S. stocks to record highs.
Data
yesterday showed U.S. jobless claims dropped more than forecast in the week to
April 6. Several Fed officials said that the central bank should begin tapering
its quantitative-easing program later this year and stop it by year end,
according to the minutes of their March meeting, released this week.
Gold
for June delivery declined 0.3 percent to $1,560 an ounce on the Comex in New
York, set for a third weekly drop.
The
Fed’s March meeting was held before a report last week that showed jobs growth
was the slowest in nine months in March. Fed Chairman Ben S. Bernanke said
earlier this week that U.S. economic conditions aren’t what he’d like them to
be, sending prices to a one-week high on April 9.
(Source: Bloomberg)
No comments:
Post a Comment