Tags: US | Commodities | Review

Gold Price Dips Below $1,223 as Euro Inches Higher

Wednesday, 02 Jun 2010 04:17 PM

Gold took a pause from its recent run-up Wednesday as the euro strengthened.

Investors are pulling money out of gold as the euro bounces off of a four-year low. Investors see gold as a safe alternative to the European common currency, which has been battered in recent weeks because of a sovereign debt crisis that started in Greece.

Investors worried about slow growth or even a second recession have poured money into gold, and to a lesser extent silver, seeking to avoid the loss in value of the euro that would come if the continent's economy stalls.

Gold for August delivery fell $4.30 to settle at $1,222.60 an ounce.

The euro rose to $1.2218 Wednesday, a day after hitting a four-year low of $1.2112.

Other metals also dipped, following gold's lead. Silver for July delivery fell 23.6 cents to $18.315 an ounce, while palladium for June delivery dropped $9.35 to $451.40 an ounce.

July copper fell 2.25 cents to settle at $3.0405 a pound.

Energy contracts rose as investors responded to hopeful signs of domestic economic growth.

Oil followed stocks higher after the National Association of Realtors reported a bigger-than-expected jump in pending home sales for April.

Benchmark crude for July delivery rose 28 cents to $72.86 a barrel on the New York Mercantile Exchange.

The Dow Jones industrial average rose 177 points, erasing its losses from the previous day.

In other Nymex trading in July contracts, heating oil rose 3.55 cents to settle at $2.0059 a gallon, and gasoline added 4.36 cents to settle at $2.0261 a gallon. Natural gas was up 17.6 cents to settle at $4.424 per 1,000 cubic feet.

Grain and bean prices were mixed. July wheat fell 8.25 cents to settle at $4.425 a bushel, while soybeans rose 0.5 cent to $9.325 a bushel. Corn fell 5.5 cents to $3.485 a bushel.

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Gold took a pause from its recent run-up Wednesday as the euro strengthened.Investors are pulling money out of gold as the euro bounces off of a four-year low. Investors see gold as a safe alternative to the European common currency, which has been battered in recent weeks...
US,Commodities,Review
307
2010-17-02
Wednesday, 02 Jun 2010 04:17 PM
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