Gold Futures End Lower Amid Profit-Taking and Currency Fluctuations

Strategic Insights -

Gold futures fell $2.50 to settle at $940 an ounce in the Comex division of the New York Mercantile Exchange, despite fluctuations in the market. Analysts attributed the decline to profit-taking, as hedge funds and speculators sought to cover losses in other areas, including declining equities and commodities markets. However, the market remained resilient due to safe-haven buying, which provided support to gold prices. Other precious metals, including silver, platinum, and palladium, also experienced declines, with platinum and palladium futures falling significantly due to weak demand fundamentals from the auto industry.

Key Takeaways:

  • Gold futures ended lower due to profit-taking and currency fluctuations, with April gold falling $2.50 to settle at $940 an ounce.
  • Analysts attributed the decline to profit-taking by hedge funds and speculators seeking to cover losses in other areas.
  • Safe-haven buying provided support to gold prices, as investors sought to mitigate risks in other markets.
  • Other precious metals, including silver, platinum, and palladium, also experienced declines due to weak demand fundamentals and profit-taking.
  • Stephen Platt, analyst with Archer Financial Services, noted that the economy is working against the gold market, but there is a flight-to-quality element providing some support.
  • Sterling Smith, vice president with FuturesOne, said that intraday short covering also supported gold, but the metal remained lower due to participant margin calls.

Statistics:

  • Gold futures fell $2.50 to settle at $940 an ounce in the Comex division of the New York Mercantile Exchange.
  • April silver fell 4 cents to settle at $13.07 an ounce.
  • Nymex April platinum fell $9.40 to settle at $1,075.90 an ounce.
  • June palladium lost $1.60 to settle at $194.10 an ounce.
  • Hedge funds and speculators took profits in gold and silver to pay for losses in other areas, according to Michael Gross, broker and futures analyst with OptionSellers.com.

Sources:

  • Dow Jones Commodities News via Comtex, Mar 02, 2009
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