Gold was little changed above a two-month low in New York as investors weighed signs of increased physical demand against gains in the dollar and equities.
The metal dropped to $1,273.40 an ounce on Aug. 21, the lowest since June 18, on speculation the Federal Reserve will raise borrowing costs sooner than expected. In China, the world’s largest gold buyer, volumes for the benchmark spot contract on the Shanghai Gold Exchange rose to a four-week high today, the latest data show.
Gold futures rose as much as 1 percent yesterday, even as the dollar strengthened amid expectations for higher U.S. interest rates and global equities gained. Fighting in eastern Ukraine persisted even as Russian President Vladimir Putin said talks with his Ukrainian counterpart over a separatist conflict that’s killed more than 2,000 people were “positive” as the parties began discussions on a political resolution.
“There’s been some scattered bargain hunting by physical buyers,” Bernard Sin, the head of currency and metal trading at MKS (Switzerland) SA, a Geneva-based refiner, said today by phone. While geopolitical tension is helping prices, advances in the dollar and equities are limiting gains for gold, he said.
Gold for December delivery was little changed at $1,285.70 by 7:41 a.m. on the Comex in New York. Bullion for immediate delivery added 0.3 percent to $1,284.99 in London, according to Bloomberg generic pricing.
via Bloomberg
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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