Gold Falls for Second Day on Economic Growth, ETP Sales
London (Oct 23) Gold futures fell for a second day as signs of economic growth in China and Europe curbed demand for the precious metal.
A Purchasing Managers Index for the manufacturing industry in the euro area rose to 50.7 in October from 50.3, London-based Markit Economics said today. Another report showed Chinese factory activity increased. Holdings in exchange-traded products backed by gold dropped 0.6 percent this week, according to data compiled by Bloomberg.
“Without seeing a pickup in ETP holdings, the near-term outlook still looks like one where the price action will be driven by short-term speculative and technical decisions,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a report.
Gold for December delivery declined 0.8 percent to $1,235.80 an ounce by 8:01 a.m. on the Comex in New York. Prices fell 0.5 percent yesterday.