| Gold gave up most of its earlier gains as the meltdown across commodity markets revived concerns over deflation, cutting the appeal of precious metals as a store of value. The Bloomberg Commodity Index of 22 components had its biggest intraday loss in a month, led by declines in wheat and oil. Investors dumped raw materials after China surprised markets by devaluing its currency, making imports of grains, energy and metals more expensive.
Gold earlier rose as China’s move spurred demand for haven assets, but as the losses in commodities deepened, bullion pared its advance. “Things would have to get really out of control for gold to achieve really higher levels and stay there,” Tim Evans, the chief market strategist at Long Leaf Trading Group Inc. in Chicago, said in a telephone interview...............................................Full Article: Source
|