“Gold dropped for a fifth day in the worst run since February in New York, to a three-week low, as a stronger dollar curbed demand for an alternative investment and bullion holdings declined. Other precious metals fell.
Holdings in exchange-traded products dropped 6.2 metric tons to 2,219.7 tons yesterday, the lowest since July 2011, according to data compiled by Bloomberg. The U.S. Dollar Index, a measure against six major currencies, reached the highest level since July today. Gold has retreated 16 percent this year, tumbling into a bear market last month, as some investors lost faith in the metal as a store of value and equities rose.
“The dollar is doing well,” Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. The ETP selling “is of course also a negative for the market and it’s indicating that among institutional investors there’s a negative sentiment. Retail buying isn’t enough to compensate.”
Gold for June delivery fell as much as 1.3 percent to $1,406.30 an ounce, the lowest since April 23, and was at $1,409.70 by 7:49 a.m. on the Comex in New York. A fifth day of losses would be the worst run since Feb. 20. Futures trading volume was 34 percent above the average in the past 100 days for this time of day, according to data compiled by Bloomberg. Gold for immediate delivery in London fell 1 percent to $1,411.49.
