Gold futures fell, capping the biggest weekly drop since September, after a U.S. equity rally and signs of easing tensions in Ukraine curbed demand for the precious metal as a haven. Silver dropped to an 11-month low.
U.S. durable-goods orders unexpectedly rose in April, indicating manufacturing is gaining, government data showed on May 27. Today, the Standard & Poor’s 500 Index of stocks climbed to a record. Last year, gold tumbled 28 percent on concern that the Federal Reserve would taper the pace of monetary stimulus as the economy rebounded.
Russia has pulled back most of its troops from the border with Ukraine, according to a U.S. defense official. Gold dropped below $1,250 an ounce to a 16-week low and posted the fifth straight daily decline, the longest slump since April 1.
Gold futures for August delivery fell 0.9 percent to settle at $1,246 an ounce at 1:39 p.m. on the Comex in New York. Earlier, the price touched $1,242.20, the lowest for a most-active contract since Feb. 3. This week, the metal dropped 3.6 percent, the most since Sept. 13.
On May 22, assets in global exchange-traded funds backed by gold fell to 1,715.8 metric tons, the lowest since Oct. 2, 2009, according to data compiled by Bloomberg.
This month, gold futures dropped 3.9 percent, the most since December. The metal has climbed 3.6 percent in 2014.
Source: Bloomberg
