“Gold declined to the lowest price this month in New York on speculation that physical demand will slow during this week’s Lunar New Year in Asia.
China, 2011’s second-biggest gold buyer, after India, and most Asian markets are closed for this week’s holiday. Gold is down 1 percent this year after rallying for a 12th straight year in 2012 as nations from the U.S. to China pledged more steps to boost economic growth. Haruhiko Kuroda, one of the potential candidates to head the Bank of Japan, said today in an interview in Tokyo that additional monetary easing can be justified this year.
“The absence of the Chinese market this week means demand from other regions has a larger gap to plug, thus exposing prices to a fragile floor,” Suki Cooper, an analyst at Barclays Plc in New York, wrote today in a report. Still, “the broader macro environment remains supportive for prices given low interest rates and global balance sheet expansion.”
Gold futures for April delivery fell 0.5 percent to $1,659 an ounce by 7:47 a.m. on the Comex in New York. Prices reached $1,656.40, the lowest since Jan. 29. Gold for immediate delivery was 0.5 percent lower at $1,658.50 in London.
The London-based World Gold Council is due to release a quarterly report this week that will show nations’ annual bullion demand.
