Tags: US | Commodities | Review

Gold Prices Pull Back a Day After Setting Record

Friday, 14 May 2010 07:07 AM

Gold dipped Thursday, a day after reaching a new record.

Investors paused and took some profits following a nearly unbroken climb this month. Traders have been piling into the gold market in recent weeks because of long-term worries about the health of the euro and other currencies.

Gold has risen nearly 5 percent in May.

"It just makes sense for there to be some profit-taking," said Scott Carter, an executive vice president at Goldline International.

June gold fell $13.90 to settle at $1,229.20 an ounce.

It traded as low as $1,227.50 an ounce earlier in the day after reaching a record of $1,249.20 an ounce on Wednesday.

Despite the pullback, Carter said gold should continue to rise over the long term. Over the past couple of weeks, traders have worried that Greece and other European countries with spiraling debt won't be able to cut costs. That led investors to park their money in gold as an alternative to holding currencies.

Carter said demand for gold from European investors has surged recently as they diversify their portfolios and reduce exposure to the euro. The euro is trading around a 14-month low against the dollar.

Historically, investors have bought gold because its value is seen as being very stable over time. Currencies can lose their purchasing power because of inflation or rampant government spending.

Silver, which has been closely tracking gold recently, also fell slightly. But not before it touched a fresh high.

July silver hit a new record of $19.845 an ounce early in the day before retreating. It settled at $19.499, down 16.4 cents.

Other metals were narrowly mixed. Platinum for July delivery fell $7.90 to $1,739.40 an ounce, while June palladium fell $4.15 to $543.30 an ounce. Copper for July delivery rose 4.35 cents to $3.2315 a pound.

Energy and grain futures were also mixed.

Oil continued its free-fall while natural gas got a boost after a report from the Energy Information Administration said the amount of gas in storage was less than expected.

Natural gas rose 5.5 cents to $4.339 per 1,000 cubic feet.

Benchmark crude for June delivery dropped $1.25 to $74.40 a barrel, while heating oil fell 2.72 cents to $2.1319. Gasoline dipped 1.53 cents to $2.1951 a gallon.

July wheat contracts dropped 12.5 cents to $4.79 a bushel and corn for July delivery fell 5.25 cents to $3.73 a bushel. Soybeans fell 1 cent to $9.645 a bushel.

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Gold dipped Thursday, a day after reaching a new record.Investors paused and took some profits following a nearly unbroken climb this month. Traders have been piling into the gold market in recent weeks because of long-term worries about the health of the euro and other...
US,Commodities,Review
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2010-07-14
Friday, 14 May 2010 07:07 AM
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