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22 June 2024

Gold slumps on reduced appeal for investors

By Agencies

Gold declined for a third day as the dollar strengthened, reducing the yellow metal's appeal as an alternative investment to the US currency.

Bullion, which typically moves in the opposite direction to the US currency, has lost 2.3 per cent this year, while the dollar has added 2.1 per cent against the euro.

Gold for immediate delivery fell $12.77, or 1.5 per cent, to $862.64 an ounce by in London. The metal rose 5.8 per cent last year, a record eighth annual advance. February futures dropped $17.10, or 1.9 per cent, to $862.40 in electronic trading on the Comex division of the New York Mercantile Exchange. "There's been some selling as the euro weakened against the dollar. Trading is still choppy as many market participants are returning from holidays," said Afshin Nabavi, a senior vice-president at MKS Finance, one of Switzerland's four bullion refiners.

Among other metals for immediate delivery in London, silver slipped 3.2 per cent to $11.20 an ounce. Platinum declined $10.25, or 1.1 per cent, to $936.25 an ounce, and palladium was 2.1 per cent lower at $188.50 an ounce. Meanwhile, copper advanced as much as 6.4 per cent, while zinc climbed as much as 7.5 per cent.