Gold Futures Fall to Six-Month Low on Bernanke Outlook
Gold futures fell to a six-month low after Federal Reserve Chairman Bernanke says the U.S. economy is recovering, easing pressure for more stimulus measures.
Stronger U.S. growth benefits the world economy, Bernanke said at a G-20 meeting in Moscow. Manufacturing in the New York region unexpectedly expanded in February, adding to signs of economic optimism, data showed today. Billionaire investors George Soros and Louis Moore Bacon cut their stakes in exchange- traded products backed by gold last quarter, government filings showed yesterday.
“People think the conditions are improving, and the stimulus may disappear,” Chuck Butler, the president of EverBank World Markets in St. Louis,, said in a telephone interview. “Gold is losing its safe-haven premium.”
Gold futures for April delivery slumped 1.2 percent to $1,615.40 an ounce at 9:40 a.m. on the Comex in New York. Earlier, the price touched $1,610.70, the lowest for a most- active contract since Aug. 16. The metal headed for the biggest weekly decline since June.
Through yesterday, gold dropped 2.4 percent this year. On Jan. 3, minutes from the Fed showed $85 billion in monthly bond purchases, the third round of so-called quantitative easing, probably will end sometime in 2013.
Twenty analysts surveyed by Bloomberg this week expect gold to fall next week, while 11 were bullish and three were neutral, making the proportion of bears the highest since Dec. 30, 2011.
Paulson & Co., the largest investor in the SPDR Gold Trust, the biggest fund backed by the metal, kept its stake at 21.8 million shares in the quarter, according to a filing yesterday.
Tell Walmart the economy is recovering.... the month of january was awful of them. The economy can not, and will not recover with gasoline over 3.50 a gallon. New York is picking up as the gov't is providing stimulus to pay for all the people who lost there homes in hurricane Sandy. Don't trust the Federal Reserve, look at what is happening all around you. Inflation in all the necessities. In my neck of the woods, a local utility just got a 13% increase approved for electricity. price any hamburger lately? Just wait a week with talk of the gov't sequestration increasing. Gold will be back.