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Gold Declines With Commodities on Chinese Data, Do
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Gold Declines With Commodities on Chinese Data, Do 1 year, 1 month ago #55

  • hymarkets
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Gold Declines With Commodities on Chinese Data, Dollar Strength
2012-03-12 06:59:51.442 GMT

By Glenys Sim
March 12 (Bloomberg) -- Gold dropped for the first time in four days alongside equities and commodities on concern that China’s economy is slowing and as the dollar strengthened.
Spot gold fell as much as 0.7 percent to $1,702.53 an ounce, and traded at $1,705.40 at 2:56 p.m. in Singapore. It climbed to
$1,716.97 earlier, the highest price since March 2. April- delivery metal declined 0.4 percent to $1,705.30 in New York.
“Just as things were looking a bit better in the rest of the world, we are reminded of economic uncertainties that still remain in China,” said Liu Yangyi, an investment consultant at Bank of China Ltd. “Gold is being pressured lower by other risk assets.”
China’s exports grew at a slower pace than forecast, contributing to the biggest trade deficit in at least 22 years last month, data showed March 10, adding to figures last week on factory output and retail sales that signaled slowing economic growth. That sent equities and commodities lower today.
Spot gold of 99.99 percent purity on the Shanghai Gold Exchange traded little changed at 347 yuan a gram ($1,736.69 an ounce), erasing an earlier 1.5 percent advance. Volumes for the benchmark cash contract were 4,205.60 kilograms on March 9, down from 5,072 kilograms the previous day.
The dollar was higher against most peers before a report tomorrow forecast to show retail sales in the U.S. rose in February, damping speculation the Federal Reserve will add to monetary stimulus. It reached the highest level since Jan. 25 against a six-currency basket including the euro and yen.

Wagers Cut

Managed-money firms cut net-long positions in gold futures and options by 26 percent to 145,997 contracts in the week ended March 6, according to U.S. Commodity Futures Trading Commission data. That’s the biggest reduction since August 2008.
“CFTC positioning suggests the bullish momentum is slowing and we may see gold trend lower in the near term, especially if the dollar stays strong,” said Ye Yanwu, head of research at Everbright Futures Co.
U.S. payrolls gained more than forecast in February and Greece completed its government debt swap needed to avert default. That sent global stocks and commodities higher last week and helped gold rebound from a one-month low of $1,663.30 on March 6 to end the week almost unchanged. Assets in exchange- traded products backed by the metal rose to a record 2,408.391 metric tons on March 9, according to data compiled by Bloomberg.
Spot silver fell for the first time in four days, dropping as much as 1.4 percent to $33.825 an ounce, and last traded at
$33.925 an ounce. Cash platinum also declined for the first day in four, losing as much as 0.7 percent to $1,673 an ounce, before trading at $1,676.50 an ounce. Palladium dropped 0.9 percent to $701.75 an ounce.

For Related News and Information:
Top commodity reports: CTOP <GO>
Top metal and mining stories: METT <GO>

--Editor: James Poole
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