Gold drops one percent in New York
Gold fell 1 percent on Thursday on encouraging US economic growth data, but it sharply pared losses as an increase in business inventories fuelled speculation the Federal Reserve has to keep its bond-buying stimulus for now. Trading was extremely choppy. Bullion fell as much as 2 percent earlier in the session, but prices recovered as participants adjusted positions ahead of Friday's all-important November US nonfarm payrolls, traders said.
Copyright Reuters, 2013
Spot gold was down 1.1 percent at $1,229.69 per ounce by 2:05 pm EST (1905 GMT), sharply off a low of $1,216.84 earlier in the session. US Comex gold futures for February delivery settled down $15.30 at $1,231.90 an ounce, with trading volume on track to finish in line with its 30-day average, preliminary Reuters data showed.
Holdings in SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, fell 2.70 tonnes to 838.71 tonnes on Wednesday, the lowest since early 2009. In other metals, silver followed gold's moves and was down 1.1 percent at $19.45 an ounce. Platinum fell 0.8 percent to $1,356.99, while palladium rose 0.8 percent to $730.50.