Gold falls from 5-wk high as sales seen to cover other losses

Gold falls from 5-wk high as sales seen to cover other losses

Gold today retreated from five-week high on speculation some investors will sell the metal to cover losses in other assets amid signs of slowing economic growth.

Gold lost 0.3 per cent to USD 1,238.71 an ounce. It reached USD 1,249.75 yesterday, the highest since September 11. Silver also lost 0.2 per cent to USD 17.43 an ounce.

The metal advanced 0.7 per cent yesterday as US retail sales dropped more than forecast in September.

Meanwhile, gold fell to this year’s low on October 6 as signs of an improving US economy added to the case for higher borrowing costs, reducing the metal’s allure because it generally only offers investors returns through price gains.

Bullion has since rebounded as the Federal Reserve indicated a worldwide slowdown may delay US interest-rate increases. Money managers' short gold positions are near a record, US government data show.

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