February 18, 2015
Gold Drops for Second Day on China Holiday, Greek Deal Outlook
(Bloomberg) -- Gold declined for a second day to trade near a six-week low on signs of weaker demand in China during a holiday and speculation Greece will ease a standoff with creditors by asking for a loan extension.
Bullion for immediate delivery lost as much as 0.3 percent to $1,206.48 an ounce and was at $1,206.65 at 11:23 a.m. in Singapore, according to Bloomberg generic pricing. Prices fell on Tuesday to $1,203.91, the lowest level since Jan. 6.
Markets in China, the world’s second-biggest gold buyer, will be shut from Wednesday through Feb. 24 for the Lunar New Year break, and volume in the Shanghai Gold Exchange’s benchmark spot contract fell to the lowest in more than a year on Tuesday. Greece intends to request a six-month extension of its loan agreement on Wednesday, a person familiar with the matter told reporters in Brussels, asking not to be identified.
“Gold was lower as little safe-haven interest pressured prices despite Greek-Euro headlines,” Australia & New Zealand Banking Group Ltd. wrote in a note. Prices also fell on “weak physical demand from China,” it said.
Greece and euro-area members have been at odds over how to extend the country’s financial lifeline beyond its end of February expiry. Finance-minister level talks in Brussels broke up on Monday evening without another round being scheduled.
Gold for April delivery retreated 0.2 percent to $1,206.70 an ounce on the Comex in New York after most-active prices fell 1.5 percent on Tuesday.
Platinum for immediate delivery lost 0.2 percent to $1,175 an ounce after slumping on Tuesday to $1,169.75, the lowest since 2009. Spot silver dropped 0.4 percent to $16.4612 an ounce, while palladium fell 0.3 percent to $780.95 an ounce.