Metal dips from a week’s high on recovery hopes

NEW DELHI: Gold declined from a one-week high in New York on speculation that improving economic growth may curb demand for a protection of wealth. The US Federal Reserve will release minutes of its March policy meeting, when it signaled it would continue asset purchases to bolster growth.


The Goldman Sachs Group cut its gold forecasts through 2014 and said the turn in the price cycle is accelerating as the US economy strengthens. Global equities reached a threeweek high on Wednesday and are less than 1% below the highest level since June 2008.

“I can’t see the Federal Reserve changing its mind overnight, but the expectation is that the US doesn’t need any fresh quantitative easing,” James Moore, an analyst at FastMarkets in London, said on Wednesday by phone.

“Investors are looking at risk and the safe-haven role that gold has fulfilled is no longer required.” Gold futures for June delivery fell 0.4% to $1,579.90 an ounce by 7:40 am on the Comex in New York. Prices reached $1,590.10 on Tuesday, the highest since April 2. Futures trading volume was 21% below the average in the past 100 days for this time of day. Gold for immediate delivery declined 0.3% to $1,580.40 in London.