Gold Fluctuates as It Nears Floor Closing
Source: MarketWatch, Claudia Assis and Nick Godt (10/18/10)
"Investors buying on dips pushed gold higher and minimized losses."
Gold for December delivery fell 50 cents to $1,371.70 an ounce, though bullion made some short-lived forays into positive territory. Silver kept steady, holding on to a 30-year high.
The market gathered some steam as the dollar weakened, said Stephen Platt, a commodity analysts with Archer Financial Services in Chicago.
The Dollar Index, which measures the U.S. unit against a basket of six major currencies, declined to 76.94 from 77.038 late Friday.
Gold has become increasingly popular as investors mull currency uncertainties and the prospects of more steps to support the economy. Since early September, gold futures have posted a string of record highs.
The metal, however, may have reached a level "where meaningful upside, without some consolidation, may be hard to come by," said Miller Tabak Market Strategist Dan Greenhaus in a note.
Gold prices earlier hit an intraday low of $1,353.20 an ounce.
The metal dropped Friday after macroeconomic indicators suggested an improved economic picture while Federal Reserve Chairman Ben Bernanke made cautious remarks about the extent of further monetary easing.
Meanwhile, silver for December delivery rose 0.6% to $24.43 an ounce.
December copper advanced $0.2, or 0.4%, to $3.86 a pound. Industrial production declined in September, the Fed said Monday. Production slid 0.2%, the first drop in six months.