“Gold dropped to the lowest price since January in London after reports showed manufacturing may contract from China to Germany and a stronger dollar curbed demand.
China’s manufacturing may contract for a fifth straight month in March, a report showed, hurting the outlook for commodities and sending the Standard & Poor’s GSCI Index of 24 raw materials to a one-week low. The U.S. dollar rose to the highest level in almost a week against a six-currency basket including the euro and the yen. About half of jewelry stores in India remain closed as owners protest against higher taxes.
“At the moment gold is looking weak, investors are coming out of it,” David Govett, head of precious metals at Marex Spectron Group, said today by phone from London. “Data out of Chinais weaker, so you are going to look for gold imports there to drop. And with the Indian tax increase, the two major buyers of gold got reasons not to buy it. With the stronger dollar and everything else that’s going on in the world, why buy gold at this moment in time?”
Gold for immediate delivery fell 0.8 percent to $1,636.88 an ounce by 10:05 a.m. in London. It fell as much as 1.1 percent to $1,632.45, the lowest price since Jan. 16. The April-delivery contract dropped 0.8 percent to $1,636.50 an ounce on the Comex in New York….”
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