adminLONDON. — Gold prices fell yesterday, under pressure from gains in the dollar and uncertainty over whether the US Federal Reserve will begin curbing its bullion-friendly economic stimulus measures from next month. Investors are awaiting the release of minutes of the Fed’s July meeting, which could give an indication of whether the Fed could begin tapering its US$85 billion monthly bond-buying programme as early as September.
Spot gold fell 0,3 percent to US$1 366,25, while US gold futures for December delivery were down US$6,50 an ounce at US$1 366,10. On Monday gold hit a two-month high at US$1 384,10.
Speculation that the Fed is set to curb its quantitative easing programme, which helped drive gold prices to record highs in 2011, has pushed the metal down by nearly a fifth this year, but investors remain unclear on the outlook for policy.
“The Fed minutes tonight are more or less the only focus today — we’re treading water ahead of it,” said Ole Hansen, senior manager at Saxo Bank.
“Our consensus is (for stimulus to be reduced by) US$20 billion (a month) at the beginning of September. Any deviation from that could have an impact on the price,” he added.
The dollar index was up 0,25 percent, recovering from a two-month low on Tuesday, but remained under pressure from uncertainty in the markets.
Investor sentiment towards gold appeared more positive than earlier this year, with investors once again injecting money into gold-backed exchange-traded funds.
The SPDR Gold Trust, the world’s largest gold ETF, reported inflows of 1,8 tonnes on Tuesday, the fourth daily rise in its reserves in the last two weeks. Gold ETFs recorded outflows of 402 tonnes in the first half of this year.
Gold futures in India traded near their highest in eight months yesterday as the rupee weakened, but demand remained subdued ahead of the resumption of imports.
“India remains largely absent amid tighter regulations and a weak currency,” UBS said in a note. “Conversations with local participants suggest that there is good interest to re-start import activities soon, especially with authorities currently working to clarify the new rules.”
Indian traders said they will start importing gold again over the next week or so after the central bank clarified a new rule that brought the flow of the precious metal into the world’s top gold consumer to a standstill at the end of July. Demand from China and India is expected to hit 1 000 tonnes each this year, according to the World Gold Council.
Silver was last trading at US$23,04 an ounce, up 0,2 percent. Platinum was up 0,2 percent at US$1 512,60 an ounce, while palladium was down 0,1 percent at US$746,22 an ounce.
China’s silver imports fell 22,1 percent in July to 212 029kg, official customs data showed yesterday, while its platinum imports rose 20 percent to 8 941kg, with imports from South Africa, its biggest supplier, up 38 percent to 5 780kg.
Chinese palladium imports fell 15 percent last month to 1 669 kg. —Reuters.
Online Reporter