Gold and Silver Fall as Producers Dump

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“Gold fell in London on selling by mining companies seeking to hedge against the possibility of lower prices next year. Silver also declined.

Gold at the morning “fixing” in London when some miners sell output was $1,655.25 an ounce, down 0.4 percent from the last fixing on Dec. 24. Gold climbed 5.9 percent this year as investors and central banks purchased the metal.

“We saw a good amount of producer selling at the fix,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said by phone today. “It just gave an opportunity for bargain hunters to replenish stocks.”

Gold for immediate delivery fell 0.2 percent to $1,656.57 an ounce by 11:17 a.m. in London, the first drop in five days. Silver declined 0.1 percent to $29.97 an ounce, platinum was little changed at $1,537.12 an ounce and palladium gained 0.4 percent to $695.15 an ounce.”