Xinhua, Chicago :
Gold futures on the COMEX division of the New York Mercantile Exchange dropped Friday under low inflation pressure from the United States.
The most active gold contract for December delivery dropped 9.5 dollars, or 0.72 percent, to settle at 1,306.2 dollars per ounce. Gold ended the week dropping 0.4 percent, the third decline in four weeks.
Gold dipped on Friday after U.S. Labor Department reported that U.S. producer prices rose 0.1 percent in July, a second consecutive month of gains and also a sign of low inflation pressure. The data was in line with economists’ forecasts.
At one point, gold lost more than one percent following weak U. S. inflation data as well as poor physical demand, but shed some losses as alleged Ukrainian strike on a Russian military unit shored up certain safe haven demand.
Market demand for jewelry, bars and coins has been weak recently. market analysts say that once geopolitical risks abate, gold may find very little support.
Nevertheless, hedge fund Paulson & Co kept its stake in SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund in the second quarter; while Soros Fund Management LLC increased sharply its investment in gold mining stocks.
