By Nicholas Larkin
Jan. 29 (Bloomberg) -- Gold fell for a third day in London as a stronger dollar and U.S. measures to ease the financial crisis eroded demand for the metal as an alternative investment and haven.
The Federal Reserve said yesterday it was prepared to buy Treasury securities to improve credit markets, while the U.S. House passed President Barack Obama’s $819 billion stimulus package, which now moves to the Senate. The dollar rose as much as 1 percent against the euro. Bullion typically moves in the opposite direction to the U.S. currency.
“The dollar is a little bit stronger,” pulling gold prices down, said Alex MacKinnon, a trader at ODL Securities Ltd., by phone from London today. “The safe-haven status for gold has come off” the past few days, he said.
Bullion for immediate delivery slipped as much as $10.40, or 1.2 percent, to $877.15 an ounce and traded at $878.76 by 9:13 a.m. in London. April futures fell $9.90, or 1.1 percent, to $880.10 in electronic trading on the Comex division of the New York Mercantile Exchange.
Gold dropped the most in two weeks yesterday after stocks gained globally as Obama’s administration prepared a plan to set up a so-called bad bank to buy toxic financial assets.
Among other metals for immediate delivery in London, silver declined 2.1 percent to $11.7525 an ounce. Platinum lost $9, or 0.9 percent, to $947.50 an ounce, and palladium was 1.2 percent lower at $188.25 an ounce.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
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