LONDON: Gold fell 1 per cent on Wednesday as a recovery in equities and the dollar prompted some profit-taking after Tuesday’s rally, though price moves were muted as traders awaited the minutes of the US Federal Reserve’s last policy meeting.
Gold, which is sensitive to rate increases as they lift the opportunity cost of holding the non-interest-yielding metal, posted its biggest quarterly rise in nearly 30 years in the first three months of 2016 as expectations for rate rises faded.
The metal rose 1.8pc on Tuesday as equity markets sold off, fuelling interest in gold as an alternative asset, but it has since declined as stocks recovered in Europe and the dollar arrested its slide against a basket of currencies.
Spot gold was down 0.8pc to $1,221.26 an ounce at 1400 GMT, while US gold futures for June delivery were down $6.60 an ounce at $1,223.00.
Holdings of the world’s largest gold-backed exchange- traded fund, New York-listed SPDR Gold Shares, fell 0.28 tonnes to 815.44 tonnes on Tuesday, data from the fund showed. It reported this year’s first weekly outflow last week.
Among other precious metals, silver was down 0.7pc at $15.02 an ounce, platinum was down 1.2pc at $938.85 and palladium was down 0.3pc at $541.80.
Courtesy : Dawn News