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Johannesburg - Gold declined for a second day as global equities to oil prices rebounded before a US jobs report that will provide clues on the outlook for interest rates and holdings in the largest exchange-traded product shrank.
Bullion for immediate delivery fell as much as 0.5% to $1 204.97 an ounce, and traded at $1 207.88 at 3:17pm in Singapore, according to Bloomberg generic pricing. The metal rose on Jan. 6 to $1 223.19, the highest since December 16, as crude’s retreat to less than $50 a barrel sent stocks around the world tumbling.
The Bloomberg Dollar Spot Index headed for the highest close on record as minutes of the Federal Reserve’s December 16-17 meeting showed policy makers agreed the US economy was likely to continue improving.
The data due tomorrow are expected to show US employers added 200 000 or more jobs for an 11th month, backing the case for higher borrowing costs. Fed Chair Janet Yellen has said it’s unlikely the central bank will raise interest rates before late April.
“We see a bit of calm returning to the equity and oil markets, so gold takes a back seat again,” Wang Tao, a strategist at Citic Future, a unit of China’s biggest listed brokerage, wrote in an e-mail. “We continue to expect that the Fed will raise rates this year, which will drive the dollar higher and pressure gold.”
Gold for February delivery decreased 0.3% to $1 207.70 an ounce on the Comex in New York, after futures climbed on January 6 to $1 223.30, the highest price since December 16.
Assets in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, fell for a second day yesterday to 704.83 metric tonnes, the lowest level since September 2008.
Silver for immediate delivery lost 0.7% to $16.4147 an ounce. Prices advanced on January 6 to $16.7091, the highest level since December 15. Spot platinum traded at $1 218.60 an ounce from $1 218.50, while palladium slid 0.1% to $790.68 an ounce.
