Spot Gold Little Changed as Stronger Dollar Seen Reducing Demand

Gold traded little changed after two quarterly losses amid speculation that a U.S. recovery and stronger dollar may cut demand. Silver and palladium declined, while platinum advanced on record holdings.

Bullion for immediate delivery was at $1,598.58 an ounce at 11:15 a.m. in Singapore from $1,598.75 on March 29. The price dropped 4.6 percent in the three months to March to complete the first back-to-back quarterly declines since 2001.

U.S. payrolls grew in March, according to the median forecast of 58 economists surveyed by Bloomberg before April 5 data from the Labor Department, while a report tomorrow may show that euro-zone unemployment climbed to a record in February. Holdings in gold-backed exchange-traded products contracted 6.9 percent this year as the Dollar Index gained 4.2 percent.

“From where we are, things are tilted to the downside,” said Dominic Schnider, head of commodities research at UBS AG’s wealth-management unit. “There is no inflation concern and we have seen the dollar on a stronger footing.”

Cash silver declined as much as 1 percent to $28.165 — the weakest since March 27, extending two quarterly drops — and was at $28.18. Palladium lost 0.5 percent to $768 an ounce after posting a third consecutive quarterly gain.

Spot platinum advanced as much as 0.6 percent at $1,580.50 an ounce and was at $1,579. Holdings in ETPs expanded to a record 52.3814 metric tons on March 28, according to data tracked by Bloomberg.

Source: http://www.bloomberg.com/news/2013-04-01/spot-gold-little-changed-as-stronger-dollar-seen-reducing-demand.html

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