Gold Futures Now at an 8-Month Low, Strong US Economic Data to Blame

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Gold, silver and bronze

Gold futures fell to the lowest in eight months as improving US economic growth curbed demand for the metal as a haven asset.

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Sales at US retailers climbed in August at the fastest pace in four months, while consumer sentiment in September rose above the median estimate in a Bloomberg survey of economists, reports showed today.

Gold bullion futures for December delivery fell 0.8 percent to $1,229.30 an ounce at 10:59 a.m. on the Comex in New York, after touching $1,228.60, the lowest for a most-active contract since Jan. 10. Prices have gained 2.3 percent in 2014.

Gold tumbled 28 percent last year, the most in three decades. The Fed reduced monthly bond purchases to $25 billion on July 30, the sixth cut of $10 billion since November. Goldman Sachs Group Inc. analysts have forecast prices will touch $1,050 in 12 months as the U.S. economy improves.

Weakening prices ended a three-day flat streak as the price of Chinese palladium bar fell 4.1 percent on Thursday, September 11 to CNY 186.00 ($30.34) per gram. The price of US palladium bar declined 0.7 percent to $850.00 per ounce. The price of Japanese palladium bar saw little movement at JPY 3,023 ($28.30) per gram.

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At CNY 290.00 ($47.31) per gram, Chinese platinum bar fell 1.4 percent yesterday. The price of Japanese platinum bar fell 0.6 percent to JPY 4,753 ($44.49) per gram yesterday after two days of no change. US platinum bar finished the day down 0.4 percent to $1,378 per ounce.

Chinese gold bullion prices saw a 0.6 percent decline to CNY 246.90 ($40.28) per gram. US gold bullion closed 0.5 percent lower at $1,249 per ounce on the LME. The price of Japanese gold bullion finished the day at JPY 4,293 ($40.18) per gram following a 0.2 percent increase. Indian gold bullion finished the day up 0.1 percent to INR 27,432 ($451.10) per 10 grams.

The price of US silver changed direction with a 0.6 percent drop. After two days of improving prices, the metal finished at $18.94 per ounce. Indian silver prices inched up 0.2 percent to INR 41,941 ($689.70) per kilogram. The price of Japanese silver gained 0.2 percent, closing at JPY 648.00 ($6.07) per 10 grams. Chinese silver prices rose 0.1 percent to CNY 4,175 ($681.07) per kilogram.

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