Tags: Gold | Record

Gold Futures Fall From Record as Equity Rout Spurs Metal Sales

Thursday, 04 Aug 2011 12:59 PM

Gold futures fell from a record $1,684.90 an ounce as some investors sold the metal to cover losses in other markets. Silver posted the biggest drop in almost three months.

The MSCI World (MXWO) Index of equities has dropped 12 percent from this year’s May peak. The yen tumbled the most since 2008 versus the dollar as Japan intervened to drive down its currency. The euro fell against the greenback as the European Central Bank offered banks additional cash amid the debt crisis. Treasury two-year note yields plunged to a record.

“A lot of people are being forced to exit their equity positions, and they’re turning to gold to cover their losses,” said Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview.

Gold futures for December delivery fell $7.30, or 0.4 percent, to settle at $1,659 at 1:45 p.m. on the Comex in New York. Earlier, the price climbed as much as 1.1 percent and slid 1.4 percent. The metal reached an all-time high for the third straight day.

The 14-day relative strength index for gold topped 76 yesterday. An increase above 70 is a signal that prices may fall.

Yesterday, David Hightower of the Hightower Report said prices may drop to $1,600 before resuming a climb to $1,730 in an “exhaustion rally.”

Gold has gained 17 percent this year. Holdings in exchange- traded products climbed 4.5 metric tons to a record 2,178.5 tons yesterday, data compiled by Bloomberg show. The amount rose for the eighth straight session.
‘Sell Good to Save Bad’

The Thomson Reuters/Jefferies CRB Index of 19 raw materials erased its gains for the year. Silver prices dropped as much as 7.9 percent.

“Margin liquidations are forcing investors to sell the good to save the bad,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview.

Silver futures for September delivery fell $2.327, or 5.6 percent, to $39.431 an ounce on the Comex, the biggest drop since May 11. The metal touched $38.47, the lowest for a most- active contract since July 20. Earlier, the price rose as much as 1.3 percent.

Palladium futures for September delivery tumbled $42.15, or 5.3 percent, to $752.95 an ounce on the New York Mercantile Exchange, the biggest drop since March 15.

Platinum futures for October delivery fell $55.60, or 3.1 percent, to $1,729.40 an ounce, the largest decline since June 23.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
Gold futures fell from a record $1,684.90 an ounce as some investors sold the metal to cover losses in other markets. Silver posted the biggest drop in almost three months. The MSCI World (MXWO) Index of equities has dropped 12 percent from this year s May peak. The yen...
Gold,Record,
403
2011-59-04
Thursday, 04 Aug 2011 12:59 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved