Gold declined for the first time in three days in London as investors sold the metal and other assets to raise cash. Platinum fell to the lowest since September 2005.
The 1,730-member MSCI World Index of equities fell for a second consecutive day, after dropping 20 percent last week. European government bonds rose on concern bank-bailout plans in the U.S. and Europe won't prevent a global recession, fueling demand for the safest assets.
``Cash liquidity is still very tight,'' James Moore, a London-based analyst at TheBullionDesk.com, said by phone. ``In the short term, the view is negative.''
Gold for immediate delivery fell $14.90, or 1.8 percent, to $832 an ounce as of 1:11 p.m. in London. Gold futures for December declined $5.20, or 0.6 percent, to $833.80 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
Platinum for immediate delivery slid as much as $68.50, or 7.1 percent, to $900 an ounce, the lowest since Sept. 5, 2005. It last traded at $920.50 an ounce.
Investec Securities cut its 2009 forecast for the metal by 32 percent to $1,350 and lowered the 2010 estimate by 12 percent to $1,675.
``We have serious concerns that the price could fall further in the near term,'' Investec analysts led by Rebecca O'Dwyer wrote in a report dated yesterday. ``We remain bullish on platinum group metals on a long-term view, with emissions legislation and growth in emerging markets driving demand.''
JPMorgan Securities cut its 2009 forecast for platinum to $1,123 an ounce from $1,275 previously.
Among other metals for immediate delivery, silver fell 26.5 cents, or 2.6 percent, to $10.025 an ounce and palladium lost $6.25, or 3.2 percent, to $186.50 an ounce.
Rhodium fell $150, or 6.3 percent, to $2,250 an ounce, according to Johnson Matthey Plc prices on Bloomberg. The metal, used in autocatalysts, has fallen 32 percent this week. It traded at a record $10,100 an ounce on June 18.
To contact the reporter on this story: Rachel Graham in London at
rgraham13@bloomberg.net
