US gold futures slipped off two-week peaks early Tuesday as traders digested a mixed bag of economic data in choppy trade before testimony from Federal Reserve Chairman Alan Greenspan on Wednesday and Thursday. As the precious metals pulled back from a recent chart- and currency-based rally, profit-taking dragged silver off its highest since early December, and platinum also fell.
In monthly data that have been closely watched by gold traders lately, net inflows of capital into US assets in December slid to $61.3 billion - near expectations and enough to finance the nation's current account deficit that month. "The capital inflows number wasn't bad. But it's like gold is up three days in a row, silver's up 90 cents - it's called taking a deep breath," said a COMEX floor trader. "I think we're just due for profit-taking on this rally," he added. However, he said some new fund buying limited losses among the metals.
By 10:42 am EST (1542 GMT), April delivery gold was down $1.40 at $425.90 an ounce on the New York Mercantile Exchange's COMEX division, trading between $428.70 and $425.
Dealers said gold kept a gyrating dollar in view ahead of potentially market-moving comments on the US economy from Greenspan later this week. Spot gold priced at $424.15/90 versus $425.25/426 at Monday's New York close. The Tuesday afternoon fix in London was $424.40.
Silver also retreated after gaining 75 cents over three days in a dramatic bounce from chart support near $6.50 an ounce.
March silver fell 10.0 cents to $7.24 an ounce, dealing from $7.375 to $7.21. Spot hit $7.22/25, below the last close at $7.31/34. The fix was flat at $7.245. Support was pegged at $7.09 then $6.89 and $6.75/80, with resistance at $7.35/40 and $7.50/60 and then $8.235.
Speculative selling hit platinum after a report by refiner Johnson Matthey forecast the global market moving toward surplus this year despite firm demand.
April platinum dropped $20.10 to $855 an ounce. Spot fetched $850/854. March palladium was down $4.15 at $184 an ounce. Spot was worth $180/184.
Comments
Comments are closed.