Gold swung between gains and losses before the European Central Bank policy meeting today as investors weighed the outlook for continued stimulus against improving economies and declining bullion demand.
Gold lost 0.1 per cent to $1,582.15 dollar an ounce. The metal slipped 0.3 per cent earlier today and gained 0.1 per cent. Silver declined 0.3 per cent to $28.96 an ounce.
Nomura International cut its gold forecast for 2013 by 19 per cent, citing a deteriorating investment environment amid economic recovery. Billionaire hedge-fund manager John Paulson posted an 18 per cent decline in his gold fund and assets in exchange-traded products are at the lowest level since September.
March through June is the weakest period for gold because of low demand from India and China, the top physical markets, according to Alfa Bank.
Stocks gained and the euro strengthened after Standard and Poor’s raised its outlook on Portugal’s credit rating before the ECB policy meeting today.
Gold fell for the fifth month in February, the longest run of declines since 1997, amid speculation that Fed may rein in stimulus as the recovery gains traction.
Data released yesterday showed US companies hired more workers than expected, helping the Dow Jones industrial average to extend to a record high, while orders to factories fell in January by the most in five months.
Assets in exchange-traded products backed by gold dropped to 2,491.503 metric tonnes on March 5, the lowest level since September.