Gold is poised to decline after Germany and China pledged support for economic growth, lowering the appeal of the precious metal as a haven. Spot gold traded little changed at $1,591.79 after declining 0.2 percent. June-delivery bullion gained 0.2 percent to $1,591.50 in New York. Holdings in exchange-tradedproducts expanded to a three-week high of 2,386.564 metric tons yesterday
Germany will consider all ideas on bolstering euro area growth, Finance Minister Wolfgang Schaeuble said yesterday, after Chinese Premier Wen Jiabao said over the weekend that China will focus more on spurring growth. That helped drive Asian stocks, oil and copper higher for a second day today. The euro held near a one-week high against the dollar before a European Union summit tomorrow to discuss the debt crisis.
Oil traded near the highest price in three days in New York on speculation a strengthening U.S. economy will increase fuel demand and the Obama administration will refrain from easing sanctions against Iran.
Futures were little changed after rising for the first time in seven days yesterday. The U.S. won’t support relaxing the sanctions that are hobbling Iran’s oil exports when negotiators meet in Baghdad tomorrow for a second round of talks on the Persian Gulf nation’s nuclear program, according to officials who declined to be identified because of the sensitivity of the issue. Existing U.S. home sales climbed last month.
Crude for June delivery, which expires today, was at $92.70 a barrel, up 13 cents, in electronic trading on the New York Mercantile Exchange. The more-actively traded July contract climbed 12 cents to $92.98. Front-month futures rose 1.2 percent yesterday and are down 6.2 percent this year. Brent oil for July settlement was at $108.90 a barrel, up 9 cents, on the London-based ICE Futures Europe exchange. The front-month price for the European benchmark contract was at a premium to New York crude of $15.92, from $15.95 yesterday.