Aug. 27 (Bloomberg) -- Gold futures dropped for the second time in three days on signs of waning investor demand for the metal as an alternative asset.
Money managers have cut their wagers on a bullion rally in three of the past four weeks, and open interest in New York futures and options is near the lowest in five years, U.S. government data show. The Standard & Poor’s 500 Index of U.S. equities was little changed after closing above 2,000 yesterday for the first time.
“Money is moving into the equity market,” Blake Robben, a senior market strategist at Archer Financial Services in Chicago, said in a telephone interview. “The gold market is very choppy.”
Gold futures for December delivery declined 0.1 percent to settle at $1,283.40 an ounce at 1:44 p.m. on the Comex in New York. Prices touched $1,273.40 on Aug. 21, the lowest since June.
Prices have risen 6.7 percent this year as violence in Ukraine boosted demand for a haven asset.
Silver futures for December delivery rose 0.1 percent to $19.475 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for October delivery rose less than 0.1 percent to $1,419.90 an ounce. Palladium futures for December delivery gained 0.5 percent to $894.70 an ounce.
Holdings in palladium-backed exchange-traded products yesterday slipped 3.8 metric tons to 91.6 tons, the biggest drop since 2007, when the data compiled by Bloomberg begins. The assets rose to a record 95.9 tons on Aug. 4.
To contact the reporters on this story: Debarati Roy in New York at firstname.lastname@example.org; Nicholas Larkin in London at email@example.com To contact the editors responsible for this story: Millie Munshi at firstname.lastname@example.org Joe Richter, Steve Stroth