Gold Erases Losses; on Track for Worst Quarter in Decades
--Comex August gold recently trades up $3.10, or 0.3%, at $1,214.70 a troy ounce --Stronger U.S. consumer sentiment data triggers rally, gold erases earlier losses --Gold set for worst quarter in decades on Fed unwinding concerns, strong equities --Demand from top buyers India, China muted despite price declines By Matt Day and Clementine Wallop NEW YORK--Gold erased its earlier losses on Friday as traders closed out bets on lower prices ahead of the weekend, but futures remained on track for the steepest quarterly loss since the modern gold trading regime began in the 1970s. Gold for August delivery, the most actively traded contract, was recently up $3.10, or 0.3%, at $1,214.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Futures early Friday fell as low as $1,179.40 an ounce, the lowest intraday price since August 2010. Silver for September delivery surged 4.6% to $19.41 a troy ounce. Gold pushed into positive territory Friday after a reading on U.S. consumer confidence came in better than expected. Strong U.S. economic data can weigh on gold, as investors seek higher returns in growth-sensitive assets. But Friday's data didn't bring on a new wave of selling in the gold market, a sign to some traders that the recent pressure on the market was easing, said George Gero, a vice president and precious metals strategist with RBC Capital Markets. "Bargain hunters found few remaining sellers after strong consumer sentiment," Mr. Gero said. Futures were poised to snap a four-session losing streak that took prices down at one point by more than $100 an ounce. Investors have been selling on concern that the Federal Reserve will trim its $85 billion-a-month bond-buying program, which has provided support for gold prices. Gold was set to end the quarter down by nearly 25%, the weakest performance since the gold price was detached from its peg to the U.S. dollar in 1971. Fed Chairman Ben Bernanke last week outlined the steps the central bank could take to unwind its stimulus effort, the latest news pushing investors to reassess their desire to hold gold. Relatively buoyant global equities markets have drawn investors to shares instead of gold. Rising U.S. interest rates, which make yieldless assets like gold less desirable, have also limited demand. The amount of gold held by exchange-traded funds that store metal on behalf of investors is down more than 20% from the December peak. "There are plenty of bears out there," said Miguel Perez-Santalla, a vice president with online gold and silver exchange BullionVault. When gold prices tumbled in April, India and China, the world's biggest buyers, snapped up coins, bars and jewelry. But during the current selloff, consumers in both countries are holding back. "At the moment, there's no sense of a bottom for gold, and people don't know when the price will stop falling," said Yvonne Wang, gold analyst at Beijing Antaike. "Investors prefer to keep cash in the bank rather than buy gold because it's declining every day." Traders in Hong Kong--where some shops sold out of coins and bars in April--reported slow buying interest Friday and a ready supply of bullion. Meanwhile, recent moves by India's government to clamp down on gold imports, meant to curb a wide trade deficit, are also hurting demand. Buying had already flattened earlier this month because of a higher import tax and restrictions on credit for bullion importers. The rupee's fall to a record low has also limited buying by making imported gold more expensive in rupee terms. India is the top gold consumer, followed by China
Still Barrack the owner doesnt have to sell it. Mine cost per ounce is $1100 I think
