Gold headed for the biggest weekly decline in a month after a report showed the U.S. economy grew stronger than expected in the second quarter, reducing the metal’s appeal as a haven.
Bullion for immediate delivery was little changed at $1,126.27 an ounce at 8:58 a.m. in Singapore, according to Bloomberg generic pricing. It has declined 2.7 percent this week, the first weekly loss in three.
The U.S. expanded at a 3.7 percent annual rate last quarter, exceeding all estimates of economists surveyed by Bloomberg, figures showed Thursday, propelling Asian and U.S. equities and the dollar higher. An improving economy takes the luster off of gold because it increases the chances that the Federal Reserve will start tightening monetary policy, reducing the appeal of precious metals because they don’t pay interest.
Gold futures for December delivery added 0.3 percent to $1,126 an ounce on the Comex, heading for a 2.9 percent decline this week. Palladium surged 3.3 percent to $581 an ounce, extending a 5.6 percent advance on Thursday, the most since Dec. 2011. Silver for immediate delivery climbed 0.4 percent to $14.5530 an ounce, while platinum rose 0.8 percent to $1,008.50 an ounce.
Source : Bloomberg