Gold Prices Slump as Euro-Zone Debt Concerns Subside

Gold futures fell 1.1% on May 18, 2010, as concerns about the euro-zone debt crisis temporarily eased, prompting participants to book profits from recent gains. The most actively traded gold for June delivery settled at $1,214.60 an ounce, down $13.50 from the previous day. Meanwhile, silver futures rose as investors viewed recent declines as buying opportunities, while platinum and palladium group metals also gained.

Key Takeaways:

• Gold prices slumped 1.1% to $1,214.60 an ounce on May 18, 2010, as concerns about the euro-zone debt crisis temporarily eased.
• Participants booked profits from recent gains in gold, reaching record highs near $1,250 last week.
• A $1 trillion bailout package for financially troubled euro-zone nations, particularly Greece, Spain, and Portugal, had driven investors to seek the perceived safety of gold.
• Silver futures rose 0.1% to $18.879 an ounce as investors viewed recent declines as buying opportunities.
• Platinum and palladium group metals gained as a result of the same buying pattern.
• Bill O'Neill, a principal with Logic Advisors, stated there was a "little bit of stability in Europe" that had taken the edge off financial markets.
• Michael Gross, a broker and futures analyst with OptionSellers.com, viewed recent dips in metal prices as "buying opportunities."

Statistics:

• Gold prices fell 1.1% to $1,214.60 an ounce on May 18, 2010.
• The most actively traded gold for June delivery lost $13.50 from the previous day.
• Silver futures rose 2 cents, or 0.1%, to settle at $18.879 an ounce.
• Nymex July platinum added $27.30 to settle at $1,690.50 an ounce.
• June palladium on the exchange rose $3.40 to settle at $507 an ounce.

Sources:

• Dow Jones Commodities News via Comtex, May 18, 2010.
• Bill O'Neill, a principal with Logic Advisors.
• Michael Gross, broker and futures analyst with OptionSellers.com.
• Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com.