Gold fell the most in a week on bets
that the Federal Reserve may refrain from more U.S. stimulus
measures, while the dollar’s rebound eroded the appeal of the
metal as an alternative investment.
Data from ADP Employer Services showed today that U.S.
companies added more workers than forecast in June, which may
ease concern that the labor market is deteriorating. The euro
tumbled to a four-week low against the dollar after the European Central Bank cut its benchmark interest rate to a record.
“There is now less impetus for the policy makers to expand
the balance sheet,” Bart Melek, the Toronto-based head of
commodity strategy at TD Securities Inc., said in a telephone
interview. “The dollar’s strength is not helping matters.”
Gold futures for August delivery fell 0.8 percent to settle
at $1,609.40 an ounce at 1:40 p.m. on the Comex in New York, the
biggest drop for a most-active contract since June 28.
In the second quarter, the metal slumped 4 percent as the
dollar gained 3.3 percent against a basket of major currencies.
Silver futures for September delivery fell 2.1 percent to
$27.672 an ounce in New York.
On the New York Mercantile Exchange, platinum futures for
October delivery dropped 0.9 percent to $1,477.70 an ounce,
ending a three-session rally. Palladium futures for September
delivery slipped 2.2 percent to $585.75 an ounce.