Gold falls on euro concerns
Gold traded close to the lowest level in more than a week ahead of French and Italian industrial data that may show Europe’s debt crisis is hampering growth, weakening the euro and gold demand.
Spot gold retreated as much as 0.2 per cent to $US1761.20 an ounce and traded at $US1761.75 as of 8.51am in Singapore.
The metal fell to $US1760.43 yesterday, the lowest since September 27. Silver dropped as much as 0.4 per cent, while platinum and palladium also fell.
Industrial production in France and Italy, the euro area’s second and third-biggest nations, may decline in August, according to two separate polls for each country by Bloomberg.
That set the euro to weaken against the dollar for a third consecutive day, in line with gold’s drop from an 11-month high of $US1796.10 an ounce on October 5.
‘‘Gold had risen very quickly close to $US1800 so now we are seeing a retracement as things don’t go up in a straight line,’’ said Gavin Wendt, senior resource analyst at Mine Life Pty in Sydney.
‘‘There will always be periods of profit-taking but the broader picture of the metal remains strong.’’
France’s industrial output probably declined 0.3 per cent in August from July, when it gained 0.2 per cent, according to the median estimate of economists in a Bloomberg survey before the statistics office releases the data today.
A separate report may show Italian output decreased 0.5 per cent during the same month, another poll showed.
Gold for December delivery was little changed at $US1762.90 an ounce on the Comex in New York.
Holdings in exchange-traded products rose to a record 2582.43 tonnes as of yesterday, according to data compiled by Bloomberg.
Spot silver lost 0.3 per cent at $US33.815 an ounce. Cash platinum fell 0.2 per cent to $US1685 an ounce and palladium dropped 0.2 per cent to $US656 an ounce.