Singapore - Gold swung between gains and losses in New York as investors weighed data showing an improving US economy against signs Europe’s debt crisis is continuing. Palladium fell from the highest since 2011.
Global equities reached the highest since June 2008 today and the dollar traded near a seven-month high against six counterparts on signs the US economy is strengthening.
Fitch Ratings cut Italy’s credit rating by one level on March 8.
Gold exchange-traded holdings fell for a fourth straight week through March 8.
“Gold ETPs have continued to trickle lower and holdings remain vulnerable given prices are trading sub-$1,600 an ounce and furthermore should equity markets continue to outperform,” Suki Cooper, an analyst at Barclays Plc in New York, wrote today in a report. “Macro uncertainty continues to linger, and gold’s safe-haven appeal could return.”
Gold futures for April delivery rose 0.1 percent to $1,579.10 an ounce by 7:52 a.m. on the Comex in New York.
They gained as much as 0.4 percent and fell as much as 0.2 percent today after adding 0.3 percent last week, the first weekly gain since February 1.
Gold for immediate delivery was little changed at $1,580.10 in London.
Futures trading volume was 23 percent below the average in the past 100 days for this time of day.
Daily volumes for the benchmark cash contract on the Shanghai Gold Exchange have been more than double the average in 2012 since February 18, when it reached a record 22,024 kilograms, exchange data show.
Gold is down 5.8 percent this year, after 12 straight annual gains, on mounting confidence economies are recovering.
US payrolls rose and the jobless rate declined in February, the Labor Department said March 8.
Holdings in bullion-backed ETPs fell to 2,484.1 metric tons on March 8, the lowest since September, data compiled by Bloomberg show.
Silver for May delivery lost 0.2 percent to $28.89 an ounce.
Palladium for June delivery was down 0.9 percent at $775.80 an ounce, after reaching $788.45 on March 8, the highest since September 2011.
Platinum for April delivery declined 0.4 percent to $1,596.70 an ounce. - Bloomberg News