Gold futures fell from this months high as the dollars rebound crimped demand for precious metals as alternative investments. Silver dropped the most in a week.
In the week ended Nov. 11, the net-long position in Comex gold futures and options fell 14 percent, government data showed showed on Nov. 14. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal extended a slump to the lowest since May 2009, data compiled by Bloomberg show.
Gold is heading for the second straight annual loss. Today, the dollar approached a five-year high against a basket of 10 major currencies. The Federal Reserve moved closer to its first U.S. interest-rate increase in eight years, while other economies announced more stimulus. European Central Bank Mario Draghi cited an œurgent need to agree on concrete short-term commitments for the euro area.
Gold futures for December delivery fell 0.2 percent to settle at $1,183.50 an ounce at 1:37 p.m. on the Comex in New York. Earlier, the price reached $1,193.60, the highest for a most-active contract since Oct. 31.