US gold futures dropped Monday as economic optimism and concerns about further consolidation in the yellow metal prompted bullion investors to lock in recent profits. Gold for April delivery was down $5.70 at $924.40 an ounce at 10:28 am EDT (1428 GMT) on the COMEX division of the New York Mercantile Exchange. Ranged between $930.60 and $915.30.
Increased optimism and confidence among investors in financial markets triggered weakness in the gold market - Carlos Sanchez, precious metals analyst at CPM Group. Gold also pressured by lower oil prices after Opec decided to leave existing output targets unchanged. Gold futures expected to head higher as safe-haven flows return to bullion market from equities as economy not out of the woods yet - Sanchez.
Momentum positive as after the worlds largest gold-backed exchange-traded fund, the SPDR Gold Trust, said it rose over 15 tonnes to record 1,056.82 tonnes of bullion as of March 15, replacing Switzerland as the worlds sixth-largest holder of gold. Net non-commercial long position down about 10 percent at 144,788 lots, but open interest rose 1.7 percent to 371,321 lots in week up to March 10 - CFTC report.
The gold/oil ratio was at 20.62 on Monday, compared with 20.14 the previous session. COMEX estimated 9:00 am volume at a busy 55,655 lots and options turnover of 262 contracts. Spot gold was at $921.45 an ounce, down 0.6 percent from its last quote in New York late Friday. London morning fix at $923.00 an ounce. COMEX May silver down 29.5 cents, or 2.2 percent, at $12.920 an ounce, following golds bounce. Ranged $12.770 to $13.200.
COMEX estimated 9:00 am volume at 4,343 lots. Spot silver at $12.90 an ounce, down 2.1 percent from its Friday finish. Silver fixed in London at $13.06 an ounce. NYMEX April platinum down $3.10 at $1,060.50 an ounce on light profit taking after Fridays gains. Spot platinum at $1,053.00 an ounce, up 0.1 percent from its previous close. June palladium up $1.05 at $201.05 an ounce, tracking platinums gains. Spot palladium at $197.00 an ounce, up 0.3 percent from its late Friday New York quote.
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