Gold retreated to the lowest level in more than two weeks as a technical indicator used by some traders and analysts signaled further declines. Silver, platinum and palladium fell.
Bullion for immediate delivery lost as much as 1 percent to $1,282 an ounce, the lowest price since April 3, and was at $1,287.55 at 4:26 p.m. in Singapore, according to Bloomberg generic pricing. Prices lost 1.8 percent last week to $1,294.30, closing below the 200-day moving average at $1,300.41.
The metal has pared this year’s advance to 7.2 percent as investors assessed prospects for further cuts to the Federal Reserve’s stimulus program amid signs of recovery in the world’s largest economy. While tension between Ukraine and Russia spurred gains in the past month, there has been little physical buying at current prices, according to Kate Harada, precious-metals general manager at Tanaka Kikinzoku Kogyo K.K. in Tokyo.
“Gold closed last week below its 200-day moving average, which is a bearish technical factor that may pressure the gold market,” said Liu Xu, a precious metals analyst at Capital Futures Co. in Beijing.
Gold for June delivery fell 0.5 percent to $1,287.20 an ounce on the Comex in New York from $1,293.90 on April 17. April 18 was a public holiday in New York and London.
Hedge funds trimmed bullish bets on gold for a fourth week, the longest streak this year. The net-long position contracted 8.5 percent to 90,137 futures and options in the week ended April 15, the lowest since mid-February, U.S. Commodity Futures Trading Commission data show. The investors more than doubled bets on lower prices in the past month, while reducing wagers on a rally in six of the past seven weeks.
Silver for immediate delivery dropped as much as 1.9 percent to $19.251 an ounce, the lowest level since April 15, and was at $19.3658. Prices fell 1.9 percent last week.
Spot platinum lost as much as 0.5 percent to $1,406.75 an ounce, the lowest price since March 28, and was at $1,413. Palladium lost as much as 0.6 percent to $792 an ounce before trading at $794.85.