Precious Metals Fall With Gold Set for Worst 2-Day Drop in Month
London (Sept 28) metals dropped, with gold heading for the biggest two-day retreat in a month and platinum reaching a new six-year low.
Gold sank 1.2 percent to $1,133.07 an ounce as of 11:52 a.m. in London. Silver, platinum and palladium declined more than 2 percent amid a broader retreat in metals.
Commodities slumped on Monday after Chinese industrial companies reported profits fell the most in at least four years. The country’s stock-market plunge and currency devaluation are adding new challenges as China struggles with excess capacity, sluggish investment and weaker manufacturing. Traders are also looking to the U.S. jobs report later this week for clues about the health of the economy and when the Federal Reserve may raise interest rates.
“The precious metals are weaker across the board,” David Wilson, an analyst at Citigroup Inc., said by telephone from London. “A strong employment read will lead to market expectation of an earlier rate hike, which should be negative for gold.”
Employers probably added 202,000 jobs in the U.S. during September, an increase from 173,000 in the previous month, according to economist estimates compiled by Bloomberg.
è Precious metals were hit on Monday, with silver the worst performer.
square before the information Precious metals were hit on Monday, with silver the worst performer.
Assets in gold-backed exchange-traded products rose 4.6 metric tons to 1,526.9 tons, the highest level since Aug. 31, according to data compiled by Bloomberg as of Friday. The holdings were at a six-year low last month.
Competition authorities in Switzerland announced an investigation into some of the world’s biggest banks, including HSBC Holdings Plc, on suspicion that they colluded to manipulate the prices of gold, silver and other precious metals. UBS Group AG, Deutsche Bank AG, Barclays Plc, Morgan Stanley, Julius Baer Group Ltd. and a unit of Tokyo-based trading company Mitsui & Co. Ltd. are also part of the probe.
Platinum retreated 2.2 percent to $925.35 an ounce. Silver sank 2.7 percent to $14.7105 an ounce. Palladium lost 2.6 percent to $647.10 an ounce.