Gold Declines in N.Y. as Dollar’s Gain Pares Investment Demand
By Nicholas Larkin and Pham-Duy Nguyen
Sept. 29 (Bloomberg) -- Gold fell in New York as a stronger dollar cut investment demand for the precious metal. Silver sank.
The dollar climbed as much as 0.6 percent against the euro, touching a two-week high, as evidence economies have yet to shake off the worst effects of the global recession spurred demand for the safety of the U.S. currency. Gains in U.S. equities helped limit gold’s losses.
“Gold is looking at the dollar and the stock market for direction,” said Frank McGhee, Integrated Brokerage Services LLC’s head dealer in Chicago. “At this point, it could drop $25 or rally $25.”
Gold futures for December delivery fell $2.30, or 0.2 percent, to $991.80 an ounce at 11:04 a.m. on the New York Mercantile Exchange’s Comex division. Earlier, the price rose as much 0.1 percent and dropped as much as 0.8 percent.
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IMF Board Approves Sale of 403.3 Metric Tons of Gold (Update1)
By Sandrine Rastello
Sept. 18 (Bloomberg) -- The International Monetary Fund’s executive board approved gold sales of 403.3 metric tons valued at about $13 billion and pledged to avoid disrupting the market with the transactions.
The IMF said it would “stand ready to sell gold directly to central banks.” The sales could also be conducted in the open market in a “phased manner” over time, the Washington- based lender said in an e-mailed statement today.
“These sales will be conducted in a responsible and transparent manner that avoids disruption of the gold market,” IMF Managing Director Dominique Strauss-Kahn said in the statement.
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