Gold falls for second straight day on signs of global slowdown

LONDON: Gold today fell for a second day as commodities declined on signs of a global slowdown, prompting investors to sell the metal after the best quarterly advance in more than two years.

Gold lost 0.5 per cent to 1,763.50 dollar an ounce, after climbing 11 per cent in the three months ended September, the most since June 2010.

Commodities measured by the Standard and Poor's GSCI Spot Index fell 0.4 per cent, led by metals and oil, as a government survey found that China's manufacturing shrank a second month for the first time since 2009.

The dollar rose to the highest since September 11 against a basket of major peers, including the euro, before data that may confirm the jobless rate in the 17-nation region rose to a record in August.

Holdings in exchange-traded products backed by gold stood at 2,545.354 tons as of September 28, up 8 per cent for the year. Assets reached a record 2,551.86 tons on September 25, the data show.

Markets in China, Hong Kong and South Korea are closed today for a holiday.