Gold Futures Advance to Snap Longest Slump Since August
New York (June 3) Gold futures rose, snapping the longest slump in almost nine months, after U.S. equities dropped for the first time in four sessions.
The Standard & Poor’s 500 Index of stocks fell as much as 0.3 percent. Gold slumped 28 percent last year as equities rallied to a record amid expectations that the Federal Reserve would reduce asset purchases as the economy recovers.
“Gold is getting some support as the equity market is taking a breather,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “A lot depends on the U.S. economic data over the next few days.”
On the Comex in New York, gold futures for August delivery rose less than 0.1 percent settle at $1,244.50 an ounce at 1:40 p.m. Earlier, the price touched $1,240.20, the lowest for a most-active contract since Jan. 31. Trading was 42 percent below the average for the past 100 days, according to data compiled by Bloomberg.
Gold dropped in the previous six sessions, the longest slump since Aug. 6, after equities rose to a record and the dollar climbed to an eight-week high against a basket of 10 major currencies, eroding the appeal of the metal as an alternative investment.
Silver futures for July delivery gained 0.1 percent to $18.763 an ounce on the Comex. The price has declined 17 percent in the past 12 months.
On the New York Mercantile Exchange, platinum futures for July delivery dropped 0.2 percent to $1,433.50 an ounce. Palladium futures for September delivery climbed 0.5 percent to $836.70 an ounce.
Palladium has advanced 16 percent this year, and platinum is up 4.3 percent.
More than 70,000 mine workers have been on strike since January in South Africa, the world’s top producer of platinum and second-biggest for palladium.