Gold Futures Decline From Five-Week High as World Bank Cuts Growth Outlook

Gold fell from a five-week high amid concerns that slower growth will curb demand for bullion.

The world economy will expand by 2.5 percent this year, down from a June estimate of 3.6 percent, as the euro area contracts 0.3 percent, the World Bank said. Gold climbed to a five-week high yesterday as Spanish and Greek borrowing costs fell and on speculation that China may ease monetary policy.

“The World Bank report shows that global growth will continue to remain an issue,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview.

Gold futures for February delivery declined 0.5 percent to $1,647.80 an ounce at 9:44 a.m. on the Comex in New York, dropping for the second time in three sessions. Prices climbed to $1,668 yesterday, the highest since Dec. 13.

“Gold is facing technical resistance at the $1,660 level,” Meger said.

India, the world’s biggest gold buyer, raised import duties on gold bars and coins to 2 percent and the silver levy to 6 percent, the finance ministry said yesterday. Gold imports were already expected to drop 48 percent in the first quarter as a weaker rupee boosted prices and high borrowing costs curbed demand, Prithviraj Kothari, the president of the Bombay Bullion Association, said on Jan. 3.

Silver futures for March delivery rose 0.6 percent to $30.305 an ounce in New York, climbing for the second straight session.