Bloomberg (08/11) -- Gold dropped to a three-week low in New York as
payrolls in the U.S. rose more than forecast in October, increasing
speculation that the Federal Reserve may start reducing economic
stimulus by the end of this year. The Labor Department said
204,000 workers were added, compared with the median forecast of
120,000, according to a survey of 91 economists. The Bloomberg U.S.
Dollar Index gained in three of the past four days. The economy shows
signs of “underlying strength,” Fed policy makers said on Oct. 30. The
statement pointed to the possibility of reduced bond purchases as soon
as December, Citigroup Inc. and Barclays Plc said.Gold futures
for December delivery declined 1.8 percent to settle at $1,284.60 an
ounce at 2:01 p.m. on the Comex in New York, extending the week’s drop
to 2.2 percent. Earlier, prices touched $1,280.50, the lowest for a
most-active contract since Oct. 17. Gold has fallen 23 percent
this year and is heading for the first annual drop in 13 years as some
investors lost faith in the metal as a store of value and on speculation
a strengthening economy will spur the Federal Reserve to slow its $85
billion in monthly debt purchases.Silver futures for December delivery slipped 1.6 percent to $21.317 an ounce in New York.On
the New York Mercantile Exchange, palladium futures for December
delivery slid 0.2 percent to $757.90 an ounce. Platinum futures for
January delivery dropped 1 percent to $1,442.90 an ounce.
