Investors resumed sales from gold-backed funds as traders increased expectations that the Federal Reserve will raise interest rates again in March. Bullion futures posted a third straight decline.
Holdings in gold exchange-traded products fell 0.9 metric ton on Tuesday to erase gains made the previous day, data compiled by Bloomberg show. Assets have declined 10 times in the last 12 sessions to 1,466.3 tons, near the lowest in more than six years.
Gold futures for delivery in February lost 0.8 percent to settle at $1,059.80 an ounce at 2:16 p.m. on the Comex in New York. Prices slipped 0.7 percent in the two previous sessions. The metal is down 11 percent this year, set for a third straight annual decline in the longest slump since 1998. Aggregate trading was 28 percent below the 100-day average for this time, data compiled by Bloomberg show.
Silver futures for March delivery retreated 0.6 percent to $13.842 an ounce on the Comex. On the New York Mercantile Exchange, platinum fell the most in almost two weeks, and palladium slid.