Gold futures fell in New York as signs of economic recovery curb demand from investors. Silver dropped to a seven-week low.
Gold futures for February delivery fell $3.30 U.S., or 0.3%, to $1,343.20 U.S. an ounce at 8:38 a.m. on the Comex in New York. Prices earlier today dropped to $1,340.20 U.S., the lowest since Nov. 18.
Holdings in gold-backed exchange-traded products dropped 2.16 metric tons to 2,065.41 tons yesterday, the lowest amount since Aug. 18, according to data compiled by Bloomberg from 10 providers. They reached a record 2,114.6 tons on Dec. 20.
Gold is heading for a first monthly drop since July, after rising 30% in 2010 and touching a record $1,432.50 U.S. an ounce on Dec. 7. The price may rise next week, according to five of 11 traders, investors and analysts surveyed by Bloomberg.
Silver futures for March delivery fell 17.3 cents U.S., or 0.6%, to $27.309 U.S. an ounce, after earlier today dropping to $27.08 U.S., the lowest since Nov. 30. The metal is set for a third weekly drop, the longest losing run since March.
Taurus Funds Management Pty sold all the silver holdings in its $200-million U.S. precious-metals fund this month as the rally last year was excessive. The fund stuck with a larger bet on gold. Silver rallied 83% last year.
Platinum futures for April delivery climbed $4.80 U.S., or 0.3%, to $1,823.40 U.S. an ounce. Palladium for March delivery fell $3.85 U.S., or 0.5%, to $812 U.S. an ounce.
