Gold to fall as greenback gains strength

Gold ticked higher yesterday, holding near last week's record, but a rebound in the US dollar and the absence of Japanese speculators could limit gains.

Spot gold was quoted at $1,050.50 an ounce in Singapore, up $2.25 from New York's notional close and within striking distance of a lifetime high of $1,061.20 an ounce struck last Thursday.

US gold futures for December delivery added $3.30 an ounce to $1,051.90 on the Comex division of the New York Mercantile Exchange, hovering near last week's record around $1,062 an ounce.

Gold, little changed in London, may decline as the dollar advanced against global currencies and some investors sold after the metal's jump to a record last week.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,109.314 tonnes as of October 9, unchanged from the previous business day. The holdings rose to a record high of 1,134.03 tonnes on June 1.

Among other metals, silver rose as much as 1.4 per cent to $17.96 an ounce, the highest since July 2008, and was last up 0.4 per cent at $17.785. Platinum lost 0.3 per cent to $1,330.10 an ounce and palladium was 0.6 per cent higher at $322 an ounce.

 

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