Gold has rallied 11 percent since the end of June, making it set for the biggest quarterly gain since June 2010. The Federal Reserve, Bank of Japan and European Central Bank have all recently announced measures to stimulate growth, causing gold to become the investment of choice for many investors.
By Debarati Roy
Sep 28, 2012 7:06 AM MT
Gold declined in New York for the second time in three days as investors awaited results of stress tests on Spanish banks.
The test conducted by Oliver Wyman on 14 banking groups is a precursor to the formation of a so-called bad bank to which troubled lenders will transfer soured real estate to bolster balance sheets. Gold has rallied 11 percent since the end of June, set for the biggest quarterly gain since June 2010, as the Federal Reserve, Bank of Japan (8301) and European Central Bank announced measures to stimulate growth.
“People are in a risk-off mode today and are waiting for news out of Spain,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “Also there is some end-of-the-month and quarter profit taking.”
Gold futures for December delivery fell 0.1 percent to $1,778 an ounce at 10:04 a.m. on the Comex in New York.
Silver futures for December delivery were up 0.1 percent at $34.715 an ounce on the Comex, heading for a gain of 26 percent for the quarter, the most since the end of 2010.
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