Gold slipped from earlier highs on Tuesday, ending lower as the dollar strengthened and investors looked for further indications that the US Federal Reserve may soon end or taper its economic stimulus programme. Many participants are on hold until Friday's June US employment report offers new insights into economic growth.
Spot gold extended losses to 0.81 percent at $1,242.81 by 3:23 EDT (1723 GMT), after rising earlier to a near one-week high at $1,267.20 an ounce. US gold futures for August delivery lost 1.09 percent to $1,242 an ounce. "Investors have gradually come to the realisation that there is no reason to own the asset class now because at some point interest rates are going to go up and there is no inflation anywhere to be seen," said Troy Gayeski, partner and senior portfolio manager at SkyBridge, which has $7.9 billion assets under management and advisement.
SPDR Gold Trust, the world's largest gold exchange-traded fund, reported an outflow of 1.2 tonnes to 968.30 tonnes on Monday, its lowest since February 2009. Its holdings have dropped 382.5 tonnes since the start of the year. Silver was down with gold, losing 1.38 percent to $19.29 an ounce. It reached a near three-year low at $18.19 on Friday. Platinum fell 0.89 percent to $1,362.24 an ounce and palladium dropped 0.44 percent to $681.47 an ounce.
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