Nicholas Larkin News
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Gold futures fell to a three-week low on speculation that the Federal Reserve may signal a reduction of U.S. economic stimulus. Palladium dropped to the cheapest in more than a month as European car sales plunged.
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Gold declined in New York before the Federal Reserve starts a two-day meeting as investors weighed when the central bank will taper asset purchases.
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Gold holdings through exchange- traded products will probably drop another 285 metric tons this year as prices fall further on speculation the U.S. economic recovery will mean less stimulus, Societe Generale SA said.
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Best-performing precious metal palladium is holding up better than most analysts anticipated in the annual London Bullion Market Association survey while gold, silver and platinum have surprised every forecaster.
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Gold traders turned bearish for the first time in a month as investors reduced holdings in exchange- traded products for an unprecedented 17th consecutive week and India, the biggest buyer, announced curbs on imports.
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Silver is punishing investors amid diminishing trust in precious metals as a store of wealth and concern that growth is weakening, with $5.2 billion erased from the value of their near-record holdings this year.
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Gold swung between gains and losses near a two-week low in London as investors weighed speculation the U.S. Federal Reserve will curb stimulus against a weakening dollar.
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Gold futures declined to the lowest price in more than two weeks on speculation that central banks will curb stimulus, lowering demand for the precious metal as a store of value.
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Gold’s recovery to a three-week high last week is over and prices that entered a bear market in April may fall another 5.5 percent to about $1,303 an ounce, according to technical analysis by UBS AG.
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Gold traders are the most bullish since before the bear market began two months ago after a retreat in equities from an almost five-year high and a weakening dollar spurred demand for bullion.
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