Gold Futures Slump Most in Three Weeks as Investor Demand Wanes

PT. Equityworld Futures - Gold fell the most in three weeks on signs that investors are balking at the metal even after a recent rally.
Hedge funds cut their net-long position to the lowest since December 2013 and are holding the most short wagers since records begin in 2006, U.S. government data show. Global assets in exchange-traded products backed by gold dropped 56.6 metric tons in March, the most in 15 months. Prices rallied in the previous two weeks on speculation that U.S. interest rates would rise at a slower pace than expected.
Even after Federal Reserve policy makers cut their outlook for where borrowing costs will be by year-end, investors are betting that officials will still lift benchmark rates from near zero fast enough to prevent inflation from surging as the economy rebounds. Gold has historically been used as a hedge against higher consumer prices.
Gold futures for June delivery dropped 1.3 percent to settle at $1,185.30 an ounce at 1:40 p.m. on the Comex in New York, the biggest drop since March 6.
A core measure of consumer prices, which excludes food and fuel, rose 1.4 percent in February from a year earlier, Commerce Department figures showed Monday.
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Gold Rallies for Second Week as Yemen Conflict Increases Demand

PT. Equityworld Futures - Gold headed for the first back-to-back weekly climb since January after Saudi Arabia and its allies started bombing targets in Yemen, boosting demand for a haven as prices posted the longest run of gains in more than two years.
Bullion for immediate delivery traded at $1,203.41 an ounce at 8:21 a.m. in Singapore from $1,204.81 on Thursday, when it rose for a seventh straight day, according to Bloomberg generic pricing. The metal rallied to $1,219.79 on March 26, the highest level since March 2, and is up 1.8 percent this week. Gold traded in Shanghai also headed for a weekly advance.
Investors have historically turned to precious metals during times of geopolitical tension. Gold headed for the first quarterly gain since June as the Saudis headed a coalition of 10 Sunni-ruled nations that carried out raids around Yemen’s capital.
Gold climbed every day since Federal Reserve policy makers signaled last week they’re in no hurry to raise interest rates, weakening the dollar and raising the appeal of bullion. Data on Thursday showed jobless claims dropped to the lowest level since mid-February, spurring a rebound in the U.S. currency.
Gold for June delivery was at $1,203.80 on the Comex from $1,205.70 on Thursday and is set to gain 1.6 percent this week. Bullion of 99.99 percent purity was at 240.80 yuan a gram ($1,205.92 an ounce) on the Shanghai Gold Exchange.
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Gold Trims Weekly Advance as Yemen Conflict Weighed With Dollar

PT. Equityworld Futures - Gold pared the first back-to-back weekly climb since January as investors weighed a rising dollar against demand for a haven after Saudi Arabia and its allies started bombing targets in Yemen.
Bullion for immediate delivery fell as much as 0.4 percent to $1,200.10 an ounce and was at $1,204.47 at 2:50 p.m. in Singapore, reducing this week’s gain to 1.9 percent, according to Bloomberg generic pricing. The metal rallied to $1,219.79 on March 26, the highest level since March 2, as it capped seven days of gains, the longest run of advances since 2012. Gold in Shanghai headed for the first weekly advance in seven.
Investors have historically turned to precious metals in times of geopolitical tension. Gold was set for the first quarterly gain since June as the Saudis headed a coalition of 10 Sunni-ruled nations that carried out raids around Yemen’s capital. Saudi Arabia’s southern neighbor is near the center of world energy trade, and oil is poised to post the biggest weekly gain since 2011 amid concern supplies may be disrupted. The Bloomberg Dollar Spot Index rose the most in a week on Thursday.
Data on Thursday showed jobless claims dropped to the lowest level since mid-February. Fed Bank of Atlanta President Dennis Lockhart said the economy can handle moving to a higher-rate environment. Fed Chair Janet Yellen is scheduled to speak on monetary policy in San Francisco on Friday.
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Gold Logs First Fall in 8 Sessions

PT. Equityworld Futures - Gold futures settled with a loss on Friday, putting an end to a seven-session stretch of gains that had lifted prices to their highest level in more than three weeks.
Prices rallied particularly strongly over the past two trading sessions as declines in global equities and turmoil in Yemen helped buoy safe-haven investment demand for the metal.
Gold for April delivery   shed $5, or 0.4%, to settle at $1,199.80 an ounce Friday on Comex. During their seven-session climb, gold futures tallied a total gain of 4.9%. For the week, prices gained 1.3%.
May silver  settled down 7.1 cents, or 0.4%, at $17.069 an ounce, leaving it with a weekly gain of 1.1%.
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