Gold declined the most in a week after three voting members of the Federal Open Market Committee said they don’t see a need for more economic stimulus and as physical demand slumped in India, the world’s biggest importer.
John Williams, president of the San Francisco Fed, joined his counterparts from Richmond, Philadelphia and Atlanta in casting doubt on the need for additional purchases of bonds to push down longer-term interest rates even as American employers added fewer jobs than forecast. India imported 30 to 35 metric tons of gold in April, down from 90 tons a year earlier, the Bombay Bullion Association said today.
“The market is clearly worried,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “The physical demand has also been very weak.”
Gold futures for June delivery fell 0.5 percent to settle at $1,654 an ounce at 1:41 p.m. on the Comex in New York, the biggest drop for a most active contract since April 23. Prices declined for the past three months, the longest losing streak since 2001.
Companies in the U.S. added 119,000 workers in April, according to figures from Roseland, New Jersey-based ADP Employer Services. The median forecast of economists surveyed by Bloomberg News called for a 170,000 advance.
Holdings in bullion-backed exchange-traded products were 2,381.6 tons as of yesterday, the lowest since Feb. 1, data compiled by Bloomberg show.
“Significant ETF buying will have to resume in order to breathe some life back into gold,” Edel Tully, an analyst at UBS AG in London, wrote today in a report.
Silver futures for July delivery slid 0.9 percent to $30.645 an ounce on the Comex, retreating for the third straight day.
On the New York Mercantile Exchange, palladium futures for June delivery slipped 1.7 percent to $669.45 an ounce, the biggest decline since April 4. Platinum futures for July delivery fell 0.5 percent to $1,564.40 an ounce on the Nymex.