Gold Pares Back Biggest Rally In 3-weeks

Gold declined in New York on investor sales after the biggest rally in almost three weeks.

Futures jumped 1.1 percent yesterday, the most since Jan. 10, on demand for a haven with a shrinking U.S. economy. Growth will bounce back in the current quarter, economists at JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley say.

“Gold lacks a convincing catalyst near term to take it convincingly higher and instead remains susceptible to opportunistic selling,” Xiao Fu, an analyst at Deutsche Bank AG, said in a report dated today.

Gold futures for April delivery dropped 0.3 percent to $1,676.40 an ounce at 7:01 a.m. on the Comex in New York. Prices are up less than 0.1 percent this month, after three months of declines.

Platinum futures fell 0.8 percent to $1,675.50 an ounce and are heading for an 8.6 percent gain for January, the biggest monthly advance in a year. Palladium dropped 1.8 percent to $737.75 an ounce, narrowing this month’s gain to 4.9 percent.

Silver for March delivery declined 0.4 percent to $32.035 an ounce and is up 6 percent for January.

Bloomberg

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