Gold prices were down modestly despite losses in global equity markets and a softer dollar – demonstrating investor apathy to the yellow-metal as a safe haven.
Gold for December delivery on the Comex division of the New York Mercantile exchange was last down $6.20 or 0.6 percent to $1,127.80 per ounce. Trade has ranged from $1,126.40 to $1,134.70.
“We are of the opinion that gold’s safe haven status has been reduced significantly,” ABN AMRO said in a note. “At times of severe crisis, gold cannot live up to its safe haven status.”
In gold specific data, money managers increased their net long positions around 33,000 to 40,600 contracts in the week of August 25, according to CFTC data.
This was attributable to short covering, but added that the upward momentum was unsustainable and net-long positions were due for a reduction, Commerzbank said.
The markets remain quiet in the early morning US trading period as most United Kingdom businesses are closed for a late summer holiday.
Turning to the eurozone, Germany’s DAX and France’s CAC-40 were down 0.8 percent and 0.9 percent respectively, while the euro was 0.4 percent stronger at $1.1234 against the dollar.
As for other precious metals, Comex for December delivery was last down 9.5 cents to $14.440 per ounce. Trade has ranged from $14.425 to $14.535.
Platinum for October delivery on the Nymex fell $20.0 to $1,001,70 per ounce, while the most-actively traded palladium contract was at $590.65, up $1.10.
(Editing by Tom Jennemann)
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