Gold Is Little Changed in New York
Source: Bloomberg, Pham-Duy Nguyen (12/22/10)
"Futures are headed for a 10th straight annual gain."
Investment in 10 leading exchange-traded funds backed by gold has climbed 18% this year. Futures reached an all- time high of $1,432.50 an ounce on Dec. 7 and are headed for a 10th straight annual gain. The International Monetary Fund said yesterday it concluded the planned sale of 403.3 metric tons, or 13% of its gold reserves.
"The gold market is expected to trade higher today," Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago, said in a report. "Support will come from the completion of the IMF's gold sales, a bullish year-end seasonal pattern and ongoing worries over European sovereign debt."
Gold futures for February fell $0.80 to $1,388 at 9:45 a.m. on the Comex in New York. The price climbed 1.3% in the past three sessions.
Investors may interpret the IMF sale "to be an indication of reduced supplies from the official sector," Pawlicki said.
Gold priced in euros reached a record on Dec. 7. The cost of insuring Greek debt jumped to a four-week high after Fitch Ratings warned it may cut the nation's credit rating to junk.
Silver futures for March delivery fell $0.039, or 0.1%, to $29.355 an ounce. Before today, the metal jumped 75% this year.
Palladium futures for March delivery rose $4.30, or 0.6%, to $757.35 an ounce on the New York Mercantile Exchange.
Platinum futures for April delivery climbed $3.90, or 0.2%, to $1,731 an ounce.
Before today, palladium surged 84% this year, and platinum was up 17%.