Gold declined, ending its longest run of gains in almost three months, as China eased concern about a devaluation of its currency.
Global equities rebounded, and demand ebbed for haven assets including bonds and precious metals, after the People’s Bank of China quelled fears of broader currency wars with verbal support for the yuan. Bullion rose in the previous five days.
Gold is often used as an alternative store of value and tends to rise when currencies weaken. The metal deepened losses Thursday as the dollar extended gains amid increasing expectations that improving economic growth will push the Federal Reserve to increase interest rates this year. Sales at U.S. retailers rose in July, and jobless claims are hovering close to a four-decade low, government data show.
Gold futures for December delivery declined 0.7 percent to settle at $1,115.60 an ounce at 1:52 p.m. on the Comex in New York, the biggest loss since July 24.
Source : Bloomberg