2014.04.2203:25:51UTC+00U.S. Recovery Evaluated With China Demand as Gold sags in Almost 2-Week Low

Gold exchanged in almost the weakest performing mark in more than two weeks as investors weighed indications of a developing U.S. economy versus greater demand in China. Properties in the biggest exchange-traded product plunged to a 12-week low.

Bullion for immediate delivery was at $1,287.81 an ounce at 8:56 a.m. in Singapore from $1,289.77 yesterday, when the metal pulled back to $1,282, the weakest mark since April 3, based from Bloomberg generic pricing. Holdings in the SPDR Gold Trust contracted for a third day yesterday to 792.14 metric tons, the least since January 28, data from the website revealed.

Gold halted a 12-year bull run in 2013 on assumptions the Federal Reserve would trim down stimulus as the world’s biggest economy bounces back. Data today may display a U.S. manufacturing gauge progressed after a report yesterday revealed the Conference Board’s index of leading indicators bolster the most in four months. In China, the biggest consumer, volumes for the benchmark spot gold contract in Shanghai spiked up to a four-week high yesterday.

“Gold remains under pressure as long as economic data out of the U.S. is positive,” Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., said from Shanghai. “We see some support from the little pickup in physical activity when prices fall below $1,300.”

Gold for June delivery exchanged at $1,288.40 an ounce on the Comex in New York from $1,288.50 yesterday. In the week to April 15, money managers slash their net-long position for a fourth week to 90,137 futures and options, the lengthiest time period of pullbacks this year and the weakest since mid-February, U.S. Commodity Futures Trading Commission data show.

Palladium was at $779.75 an ounce from $779.35 yesterday, when financial values slide lower to $773.15, the worst since April 8. The primary union in South Africa will have an assembly with the three biggest platinum producers today after a strike over wages entered a 13th week.

Platinum was at $1,404 an ounce from $1,403.13. Financial values retreated to $1,399.38 yesterday, the weakest since March 28. Silver for immediate delivery relinquished 0.2 percent to $19.415 an ounce.