Tags: gold | precious | metal

Gold Falls on Technical Selling, Euro Summit Eyed

Monday, 05 December 2011 03:49 PM EST

Gold fell on Monday on technical selling after it failed to rise above a key chart resistance, breaking ranks with equities and other riskier assets.

Bullion's losses accelerated after it ran into a bout of selling as it was unable to extend gains above $1,760 an ounce — a level the metal last week tried to clear several times, but failed each time.

The metal's losses came when the S&P 500 jumped nearly 2 percent and the dollar fell on increasing hopes that European leaders will find a solution to the region's debt crisis at a summit on Friday.

"We have seen gold moving along in tandem with equities. However, it is way too early to say that gold will lose its safe-haven status at some point," said David Meger, director of metals trading at Vision Financial Markets.

Spot gold fell 0.9 percent to $1,729.95 an ounce by 1:26 p.m. EST (1826 GMT), after rising nearly 4 percent in the previous week. U.S. gold for February delivery fell $17.50 to $1,734 an ounce.

Spot silver was down 0.9 percent to $32.28 an ounce.

Global markets rallied after the leaders of France and Germany agreed a master plan on Monday for imposing budget discipline across the euro zone, saying the EU treaty will need to be changed in the search for a sweeping solution to its debt crisis.


© 2024 Thomson/Reuters. All rights reserved.


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Gold fell on Monday on technical selling after it failed to rise above a key chart resistance, breaking ranks with equities and other riskier assets. Bullion's losses accelerated after it ran into a bout ofselling as it was unable to extend gains above $1,760 anounce a...
gold,precious,metal
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2011-49-05
Monday, 05 December 2011 03:49 PM
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