Gold declined from a three-week high, a year after the biggest two-day slump in three decades, as investors assessed an improving U.S. economy and the situation in Ukraine.
Bullion for immediate delivery fell 0.4 percent to $1,322.32 an ounce by 9:53 a.m. in Singapore after reaching $1,331.20 yesterday, the highest since March 24, according to Bloomberg generic pricing.Gold plunged 14 percent in the two sessions through April 15 last year, the most since 1983.
The metal slumped into a bear market in 2013 on expectations the Federal Reserve would scale back stimulus as the U.S. economy recovers. Data today may show a manufacturing gauge rose for a second month after a report yesterday showed retail sales in the world’s largest economy climbed in March by the most since September 2012. Prices rebounded 10 percent this year as unrest in Ukraine spurred haven demand.
“Gold benefited from the escalation in tension between Russia and the Ukraine, but upbeat U.S. economic data put a dampener on the safe-haven rally,” Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., said on phone from Shanghai today.
Bullion rose with oil and nickel yesterday as escalating tension in Ukraine sparked concern that more sanctions will curb supplies of raw materials from Russia. While the U.S. said it’s prepared to ramp up sanctions on Russia over Ukraine, the European Union limited its decision to expanding an existing list of individuals under asset freezes and travel bans amid the region’s fragile economic recovery.
Gold for June delivery lost 0.1 percent to $1,325.30 an ounce on the Comex in New York. Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, expanded yesterday for the first time in three weeks to 806.22 metric tons, data from the website showed.
Silver for immediate delivery traded at $19.9785 an ounce from $19.9910 yesterday. Platinum dropped 0.1 percent to $1,463.88 an ounce after climbing to $1,470.25 yesterday, the highest level since March 17. Palladium fell 0.7 percent to $804.10 an ounce after reaching $816.25 yesterday, the highest since August 2011.
--With assistance from Phoebe Sedgman in Melbourne.
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