Gold Falls on Hopes for Economic Recovery; Copper Gains
Source: MarketWatch, Moming Zhou (5/1/09)
"For the moment we still see gold at the most risk of a downwards correction back to the $850 - $865 area."
Gold for June delivery fell $7.60, or 0.8%, to $883.70 an ounce Comex division of the New York Mercantile Exchange. The much less active front-month May contract fell $7.70, or 0.9%, to $883 an ounce.
Economic hopes are "stripping gold of the safe-haven bid," said Brian Kelly, chief executive officer of Kanundrum Research, a commodities and macroeconomic research firm.
Gold prices, as measured by Comex front-month futures contracts, fell 3.5% in April. The metal is now also slightly lower in year. Some analysts said the gold is facing further downward pressures.
"For the moment we still see gold at the most risk of a downwards correction back to the $850 - $865 area," said James Moore, an analyst at TheBullionDesk.com.
Investment in gold exchange-traded funds also stalled recently. Gold holdings in SPDR Gold Trust , the biggest ETF backed by gold, stood at 1,104.45 tons Thursday, unchanged for a sixth session, according to latest data from the fund.
SPDR fell 0.4% to $86.91 in Friday trading.
In other metals Friday, July silver fell 8.5 cents, or 0.7%, to $12.24 an ounce. June palladium lost $4.30, or 2%, to $213.90 an ounce, and July platinum fell $17.70, or 1.6%, to $1088.90 an ounce.
Meanwhile, July copper rose 2.7 cents, or 1.3%, to $2.0745 a pound. The metal is set to end the week up about 1.4%.
Copper's weekly gain came after it slumped 6.5% last week. Copper inventories held in the London Metal Exchange stood at 405,775 tons Thursday, according to the latest data from the exchange. That's down 34,700 tons, or nearly 8%, from a week ago.