Gold declined in New York after a rally to near a record on concern for further policy easing in the U.S. prompted some sales of the metal.
Gold earlier today gained as the dollar slumped to an eight-month low against the euro after Federal Reserve Chairman Ben S. Bernanke said additional monetary stimulus may be warranted because inflation is too low and unemployment is too high. The dollar since rebounded. Gold futures reached a record $1,388.10 an ounce yesterday.
“People are selling physical metal at these levels,” said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. “With the run-up we’ve had, it’s not surprising to see some profit-taking. We’ve also seen a run-up on the dollar.”
Gold futures for December delivery lost $11.20, or 0.8%, to $1,366.40 an ounce at 10:33 a.m. on the Comex in New York. Prices earlier today rallied to $1,386.40. Bullion for immediate delivery in London was 1.1% lower at $1,366.45 an ounce after yesterday reaching a record $1,387.35.
