Gold Has Longest Slump in Six Years, Platinum Falls on Dollar

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Gold headed for the longest slump in six years and platinum fell to a 67-month low as the dollar’s rally cut demand for precious metals as alternative assets.

The greenback climbed to the highest in almost 12 years against a basket of six currencies on speculation that the Federal Reserve is getting closer to raising interest rates, while the European Central Bank purchases debt. Spot gold touched a 14-week low.

Global holdings in exchange-traded funds backed by the metal have dropped for 10 straight days, the longest slump since November. Policy makers are better off tightening earlier and more gradually than later and quickly, Fed Bank of Dallas President Richard Fisher said  two days ago.

Gold for immediate delivery fell 0.9 percent to $1,151.07 an ounce at 1:44 p.m. New York time, according to Bloomberg generic pricing. The price headed for an eighth straight drop, the longest slump since March 2009. Earlier, the metal touched $1,147.72, the lowest since Dec. 1.

Holdings in gold ETPs fell 5.5 metric tons on Tuesday to 1,653 tons, the lowest since Jan. 26, according to data compiled by Bloomberg.

Gold futures for April delivery declined 0.8 percent to settle at $1,150.60 on the Comex in New York.

Spot platinum fell as much as 1.3 percent to $1,114.05 an ounce, the lowest since July 14, 2009.

Spot silver dropped 1.9 percent to $15.376 an ounce. The price headed for an eighth straight drop, the longest slump since April 2013. Earlier, the metal touched $15.2977, the lowest since Dec. 1.

Source : Bloomberg