“Gold swung between gains and losses below the highest level this month in London as investors weighed improving economic data against speculation for more stimulus.
Gold rose yesterday after European Central Bank council member and head of Germany’s Bundesbank Jens Weidmann said the ECB will maintain its accommodative monetary-policy stance “for as long as necessary.” Global equities are 0.5 percent below yesterday’s highest level since 2008 before a report today that may show U.S. retail sales gained last month. Investors have cut gold exchange-traded product holdings to a six-month low.
Gold “edged up amid dip-buying and expectations of additional central bank measures,” Mumbai-based Kotak Commodity Services Ltd. said today in a report. “However, firmness in equity markets and ETP redemptions will continue to weigh on the gold price.”
Gold for immediate delivery was little changed at $1,592.55 an ounce by 9:46 a.m. in London. Prices rose as much as 0.1 percent and fell as much as 0.2 percent after reaching $1,598.80 yesterday, the highest since Feb. 28. Futures for April delivery were little changed at $1,591.20 on the Comex in New York. They gained the past four days, the best run since August.
Futures trading volume was 37 percent below the average in the past 100 days for this time of day.
Bullion is down 4.9 percent this year on optimism global economies are strengthening. Holdings in gold ETPs fell the past four weeks and slipped 7 metric tons yesterday to 2,472.9 tons, the lowest since September, data compiled by Bloomberg show. They’re down 159.6 tons from the December record.