LONDON: Gold fell on Tuesday as investors locked in gains from the metal’s biggest one-day rally in six weeks, posted after a string of high-profile arrests in Saudi Arabia sent oil to a 2-1/2 year high, and the dollar and US Treasury yields sank.
Spot gold was down 0.4 per cent at $1,276.61 an ounce at 1300GMT, while US gold futures for December delivery were $4.10 an ounce lower at $1,277.50.
The metal rallied in New York trading on Monday to end the day up nearly 1pc, erasing losses made in earlier trading and throughout the previous session.
“Gold is not providing any reason to be bought.” The dollar rose 0.4pc versus the euro on Tuesday on buoyant risk appetite, and as investors added bets that monetary policy would continue to diverge between the United States and the euro zone.
Among other precious metals, silver was down 1pc at $17.05 an ounce after hitting its highest since Oct 20 at $17.27 earlier in the session. It outstripped gains in gold during Monday’s rally, ending the day 2.5pc higher.
That pushed the gold/silver ratio to its lowest since mid-September at 74.39. “Not only was silver pulled up by gold yesterday its gains were also twice as pronounced,” Commerzbank said in a note.
“Silver... is only just below the 200-day moving average. Any rise above this mark could spark technical follow-up buying and lend further buoyancy to the silver price.”
Platinum was down 1.5pc at $920.24 an ounce, while palladium was 0.1pc lower at $999.25.
Published in Dawn, November 8th, 2017