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Singapore - Gold headed for a second weekly decline, with gains in equity markets and the dollar hurting prices as investors return to riskier assets and weigh the possibility of additional economic stimulus.
Bullion for immediate delivery fell as much as 0.6% to $1 323.70 an ounce and traded at $1 325.07 at 3:24 p.m. in Singapore for a 0.9% loss this week, according to Bloomberg generic pricing.
Silver in Shanghai posted the biggest weekly loss in almost four months.
Gold has pared this year’s rally as Asian stocks reached an eight-month high this week and the dollar strengthened. European Central Bank president Mario Draghi signalled on Thursday that the bank stands ready to take further measures if needed after the UK vote to quit the European Union.
The Federal Reserve’s next policy meeting ends July 27.
"Gold is definitely in consolidation phase, with a stronger dollar and rising equity markets curtailing demand," Jordan Eliseo, Sydney-based chief economist at trader Australian Bullion, said by e-mail.
"That said, we expect the ECB to add fresh stimulus soon, whilst all eyes will be on the Fed’s monetary policy statement due out next week."
Holdings in gold-backed exchange-traded funds fell 1.05 metric tonnes to 2 004.4 tonnes on Thursday, data compiled by Bloomberg show. In China, bullion of 99.99 percent purity added 0.5% to 284.78 yuan a gram ($1 328.03 an ounce) on the Shanghai Gold Exchange.
Silver for December delivery climbed 1.4% to 4 333 yuan a kilogram ($20.1998 an ounce) on the Shanghai Futures Exchange, although it’s down 3% this week, the biggest weekly drop since March 25. Spot silver fell 0.6% for a 2.8% loss this week, heading for the biggest weekly decline since May 20.
Platinum fell 0.7% and palladium retreated 0.6%, with the latter heading for a fifth straight week of gains.
