Gold Slumps With Silver to Lowest Since ’10 as Platinum Retreats 

Gold and silver tumbled to the lowest level in more than four years as a gauge of the dollar headed for the biggest weekly advance in more than 12 months, curbing demand. Platinum dropped to the lowest since 2009.

Gold for immediate delivery fell as much as 0.9 percent to $1,132.16 an ounce, the lowest since April 2010, before trading at $1,141.72 by 3:49 p.m. in Singapore, according to Bloomberg generic pricing. Silver slumped as much as 2.3 percent to $15.0681 an ounce, the lowest since February 2010.

Prices of gold are set for their second annual decline for the first time since 2000 as the U.S. Federal Reserve prepares to raise interest rates next year, while central banks in Europe and Japan ease monetary policy to boost growth. Data today may show U.S. employers added 235,000 jobs in October, according to a Bloomberg survey. The European Central Bank signaled yesterday it’s ready to intensify stimulus.

“A strong report will further consolidate the strong trend in the dollar,” Australia & New Zealand Banking Group Ltd. said today, referring to the jobs data. The bank expects an increase of 310,000. “With increasingly negative sentiment in the gold market it is difficult to find any pockets of optimism.”

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, climbed to 1,099.28 today, the highest level in more than five years. The measure strengthened 1.6 percent this week, the most since June 2013.

ETP Assets

Gold futures fell as much as 1.1 percent to $1,130.40 an ounce on the Comex in New York, set for an eighth day of losses which is the longest losing run since March 2009.

Goldman Sachs Group Inc. and ABN Amro Group NV are among those predicting further losses as the Fed moves to raise interest rates. Gold may end this year at $1,100 and finish 2015 at $800, says ABN analyst Georgette Boele, while Goldman Sachs forecasts a drop to $1,050 by the end of this year.

Holdings in the SPDR Gold Trust contracted by 3 metric tons to 732.83 tons yesterday, shrinking for a third day to the lowest level since September 2008.

Silver for immediate delivery traded at $15.3317. The metal fell 5.1 percent this week. Spot platinum fell as much as 0.7 percent to $1,186.88 an ounce, the lowest since July 2009, and traded at $1,195.28. The metal is heading for a 3.3 percent retreat this week. Palladium rose 0.3 percent $753.50 an ounce for a weekly loss of 4.9 percent.

Source: Bloomberg – Gold Slumps With Silver to Lowest Since ’10 as Platinum Retreats

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