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.

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“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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