GOLD fell after its biggest weekly advance in three months, with central bank purchases and European equities in focus.
Bullion traded near US$2,359 an ounce after rallying by almost 3 per cent last week. The People’s Bank of China (PBOC) did not add to its reserves for a second consecutive month in June, according to the World Gold Council. That may be a cause of concern for investors, said Giovanni Staunovo, a research analyst at UBS Switzerland.
While bullion declined on Monday (Jul 8), European stocks trimmed losses as traders digested the unexpected result of France’s snap election.
In the lead-up, investors were concerned about the possibility of a far-right takeover with the possibility of major policy changes. But there is some relief as an inconclusive outcome potentially constrains the influence of both the left-wing coalition and Marine Le Pen’s National Rally.
Gold fell 1.4 per cent to US$2,358.95 an ounce in London at 6:40 pm local time. The Bloomberg Dollar Spot Index was little changed, as were 10-year Treasury yields. Platinum, silver and palladium also declined. BLOOMBERG
