Gold Futures End Lackluster Trading with Slightly Lower Close

Strategic Insights -

Gold futures ended the trading session with a slightly lower close on Monday, May 11, 2009, due to pressure from a mildly higher US dollar and stable equities. Despite finding some support from declines in equities and other commodities, the metal failed to break out of its range-bound trading. The June gold contract fell $1.40 to settle at $913.50 an ounce on the Comex division of the New York Mercantile Exchange.

Key Takeaways:

  • Gold futures ended the trading session with a slightly lower close, settling at $913.50 an ounce on the Comex division of the New York Mercantile Exchange.
  • The metal found support from declines in equities and other commodities, but was unable to break out of its range-bound trading.
  • Sterling Smith, vice president with FuturesOne, characterized gold's trading as "lackluster," noting the day's high and low were within the previous session's trading range.
  • A stable US dollar and lower oil prices also pressured the metal, according to Kitco Bullion Dealers analyst Jon Nadler.
  • Silver futures also settled lower, with Comex July silver losing 4.5 cents to settle at $13.910 an ounce.
  • Platinum and palladium futures were pressured by slackening demand and producer uncertainty, with Nymex July platinum falling $26.40 to settle at $1,120.70 an ounce.
  • Lonmin PLC, the world's third-biggest platinum miner, announced a loss during the first half of its fiscal year and a rights issue to raise $457 million due to uncertain demand for its metals.

Statistics:

  • June gold fell $1.40 to settle at $913.50 an ounce on the Comex division of the New York Mercantile Exchange.
  • Comex July silver lost 4.5 cents to settle at $13.910 an ounce.
  • Nymex July platinum fell $26.40 to settle at $1,120.70 an ounce.
  • June palladium on the exchange lost $5.30 to settle at $237 an ounce.
  • Lonmin PLC announced a loss of $457 million due to uncertain demand for its metals.

Sources:

  • Dow Jones Commodities News via Comtex
  • OptionSellers.com
  • Scotia Mocatta
  • Kitco Bullion Dealers
  • Lonmin PLC (LMI.LN)
  • Dow Jones Newswires
  • Matt Whittaker, Dow Jones Newswires; 201-938-5959; matt.whittaker@dowjones.com