Gold falls after big 5-day rally as China calms markets
GOLD futures fell, snapping the biggest five-day rally in almost a year, as a buoyant US labour market and China's moves to halt a rout in stocks cut demand for a haven. The Chinese authorities suspended a controversial circuit-breaker system, set a higher yuan reference rate and directed state-controlled funds to buy shares. Gold extended declines after a report showed US payrolls rose more than expected in December, boosting the dollar and reducing demand for an alternative investment.
"Calmer markets in China and stabilisation in the yuan have resulted in gold longs taking profit," Georgette Boele, an Amsterdam-based analyst at ABN Amro Bank NV, said by e-mail. "Palladium recovered on the same dynamics."
Gold futures for delivery in February fell 0.9 per cent to settle at US$1,097.90 an ounce at 1.59 pm on the Comex in New York. Prices jumped 4.5 per cent in the previous five sessions, the biggest increase since January last year. Bullion is up 3.6 per cent last week.
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