Gold futures on the COMEX division of the New York Mercantile Exchange ended nearly 2 percent lower early on Wednesday, briefly dropping below $900 an ounce as the dollar bounced higher, triggering nervous long liquidation.
June settled down $16.20, or 1.8 percent, at $909 an ounce. Trading ranged from $925.70 to a low of $899.20 which was the weakest price since April 3.
"Even though gold had been supported at $900 recently, it was questionable whether it could hold on Wednesday due to weak sentiment," said FC Stone's Broker George Nickas. "Continued economic uncertainties have pushed bullion traders to the sidelines, weakening bullion's support," added Nickas.
Gold held in StreetTRACKS Gold Shares, the world's largest gold-backed exchange-traded fund, fell to 623.41 tonnes on Tuesday from 641.82 tonnes a day earlier. Freeport-McMoran raised its full-year gold production forecast to 1.4 million ounces from 1.3 million ounces. It also expected output at its Grasberg mine in Indonesia to rebound in the second half of the year.
Meanwhile, UBS investment bank cut its one-month gold forecast to $900 from $950 an ounce, and its three-month view to $850 from $1,000 an ounce, citing a whole host of bearish factors.
COMEX estimated final volume at a busy 189,343 lots, options turnover at 27,815 lots. COMEX open interest down 3,148 lots to 424,218 lots as of April 22. Spot gold at $905.50/906.70 at 2:15 pm EDT (1815 GMT), compared with $920.65/922.05 at the close Tuesday.
Platinum July ended down $18.60 at $2,018.80 an ounce. Platinum group metals (PGMs) fell on profit taking, mirroring gold's decline. PGMs dropped despite No 1 platinum producer Anglo American's platinum unit said it could cut production by 150,000 ounces in 2008 due to South Africa's power crisis.
No 3 miner Lonmin Plc cut its full-year sales target to 775,000 ounces from 860,000 ounces previously. Spot traded at $1,991.50/2,001.50. Palladium June finished down $15.85, or 3.4 percent, at $447.55 an ounce. Spot at $441.50/447.50.
Silver May closed down 54.5 cents, or 3.1 percent, at $17.165 an ounce, ranging from $16.970 to $17.850. Spot silver at $17.14/17.20, against Tuesday's late quote of $17.64/17.73.
Comments
Comments are closed.