Gold futures headed for a second straight loss in New York as easing concerns on Greek debt boosted global equities, reducing demand for alternative assets.
Greek Finance Minister Yanis Varoufakis proposed late on Monday to exchange existing debt for new bonds linked to economic growth. The Stoxx Europe 600 Index of equities rose as much 1.3% in London, while U.S. stock-index futures advanced.
Gold prices in January capped the biggest monthly gain in three years, as concern that Greece would exit from the euro zone and signs of slowing economic outside the U.S. fueled demand for haven assets. Bullion futures fell yesterday on concern that U.S. policy makers citing “solid” domestic expansion will raise interest rates.
“Greece is still a question mark, but it’s being pushed to the back burner a bit in terms of immediate safe-haven risk, and that’s pressuring gold,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “People are taking a little money off the table right now.”
Gold futures for delivery in April fell 0.9% to $1,265.60 an ounce at 9:05 a.m. on the Comex in New York. The metal dropped 0.2% yesterday.
Silver futures for March delivery gained 0.2% to $17.28 an ounce.