Sept. 2 (Bloomberg) -- Gold may fall as better-than- forecast U.S. economic data damped speculation the Federal Reserve will act to shore up the economy, driving the dollar higher and eroding demand for the precious metal as haven.
Immediate-delivery gold traded little changed at $1,825.18 an ounce at 6:24 a.m. Singapore time, after climbing 12 percent in August for its best monthly performance since November 2009. The metal reached a record $1,913.50 on Aug. 23.
“What we witnessed was a market ‘that had just gone too far too fast’ and needed to consolidate,” Jonathan Barratt, managing director of Commodity Broking Services Pty., said in an e-mail. “Consolidation for the market remains the key for it to retest the highs and we would expect more of it in the coming days.”
Gold in New York fell for the first time in three days yesterday after the Institute for Supply Management reported its factory index was at 50.6 last month, which topped analyst estimates’ of 48.5, bolstering optimism in the economy and sending the dollar to a two-week high against six major currencies. Still, a government report today is forecast to show the pace of growth in nonfarm payrolls is slowing, increasing pressure on the Fed to consider more monetary easing.
December delivery bullion in New York was also little changed at $1,827.90 an ounce. Gold typically moves inversely to the greenback. Spot silver fell 0.2 percent to $41.5025 an ounce, while cash platinum and palladium were little changed at $1,848.10 an ounce and $783 an ounce respectively.