Gold turns lower in New York

03 Mar, 2016

Gold turned lower on Tuesday, as the dollar and global equity markets rose on better-than-expected US data, fuelling speculation the Fed will raise US interest rates. Palladium surged more than 6 percent on strong US auto sales.
Spot gold was down 0.2 percent at $1,235.96 an ounce at 3:12 pm EST (2012 GMT), after its biggest monthly gain in four years on safe-haven buying spurred by global economic concerns.
US gold futures for April delivery settled down 0.3 percent at $1,230.80. Gold prices were higher earlier, buoyed by weak Chinese manufacturing data and comments by New York Federal Reserve President William Dudley, who said he sees downside risks to his US economic outlook. This could flag a longer pause before the Fed's next interest-rate hike than he and his colleagues had earlier signalled.
"Some US dollar strength (is putting) a headwind into the gold market here, even though you've got a lot of speculation now moving to be long gold and (monthly) exchange-traded product flows rising to the second-highest level since February 2009," said Rob Haworth, senior investment strategist for US Bank Wealth Management in Minneapolis.
Palladium rallied after underperforming other precious metals last month, with traders noting support from strong US auto sales, which soared to a 15-year high in February.
Spot palladium rose by as much as 6.7 percent to $523 an ounce. Silver was down 0.1 percent at $14.86 an ounce while platinum was up 0.6 percent at $935.74 an ounce.

Read Comments