Gold was little changed, heading for a third straight weekly gain, as lower prices spurred some investors to buy the metal as an alternative asset.
Gold declined 1.9 percent the past two days after reaching a record $1,254.50 U.S. an ounce on June 8. Holdings in the world’s biggest bullion-backed exchange-traded fund rose to an all-time high. The euro fell as much as 0.4% against the dollar after rallying the previous three sessions.
Gold futures for delivery in August rose 60 cents to $1,222.80 U.S. at 9:54 a.m. on the Comex in New York. The metal is up 0.4% this week.
Gold has outperformed stocks, bonds and other commodities this year amid Europe’s sovereign-debt crisis. Before today, gold had gained 11 percent as the euro plunged 15%.
Holdings in the SPDR Gold Trust, the biggest ETF backed by bullion, rose 7.61 metric tons to a record 1,306.14 tons yesterday, according to the company’s website. The fund’s assets are up 15% this year.
Still, prices may be too high to attract new buyers, some analysts said.
Silver may outperform gold prices in the "medium term" on increasing industrial demand, and may reach $20 U.S. in the next six to 12 months, according to Citigroup.
Silver futures for July delivery fell 17.1 cents, or 0.9%, to $18.18 U.S. an ounce on the Comex.
Platinum futures for July delivery rose $7.50 U.S., or 0.5%, to $1,543.70 U.S. an ounce. Palladium futures for September delivery gained $2.60 U.S., or 0.6%, to $451.90 U.S. an ounce.
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