“Gold declined for the first time in three days in New York as a rally to the highest price in almost two weeks spurred investors to sell and curbed physical demand.
Federal Reserve Bank of Boston President Eric Rosengren said yesterday policy makers may enlarge their $85 billion monthly purchases of debt to meet their twin goals of stable prices and full employment. Treasury Secretary Timothy F. Geithner warned the government’s borrowing limit may be breached as early as next month if the ceiling isn’t raised. The World Bank cut its global growth forecast for this year yesterday.
“The market has had a nice rally and it feels a bit top- heavy,” Afshin Nabavi, a senior vice president at bullion refiner MKS (Switzerland) SA in Geneva, said today by phone. “Physical demand has slowed down a bit. People are holding back, looking for lower prices to get back in the market again.”
Gold for February delivery fell 0.5 percent to $1,675.70 an ounce by 7:52 a.m. on the Comex inNew York. Prices reached $1,684.90 yesterday, the highest since Jan. 3. Bullion for immediate delivery declined 0.2 percent to $1,676.04 in London.
Since 1960, Congress has raised or revised the debt limit 79 times, including 49 times under Republican presidents, according to the Treasury Department.
