US gold futures dropped below $900 an ounce in heavy trade Wednesday on signs of rising scrap supplies and as an increase in investor risk appetite diminished bullions safe-haven appeal. Gold for April delivery was down $22.10, or 2.4 percent, at $894.70 an ounce at 10:38 am EDT (1438 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranged between $917.50 and $892.80, which marked the cheapest level since March 10. Recent higher US inflation data and strong housing starts undermined golds safe-haven appeal, said James Steel, chief commodities analyst at HSBC. Mounting scrap supplies in top consumer India and continuing weakness in global jewellery demand partly offset increased ETF investment buying, added Steel.
Gold pressured as a report showing US current account deficit narrowed sharply for the fourth quarter, which bodes well for the long-term outlook for the dollar. The gold/oil ratio was at 18.78 on Wednesday, compared with 18.53 the previous session. COMEX estimated 9 am volume at 69,288 lots and options turnover of 1,199 contracts. Spot gold was at $894.50 an ounce, down 2.1 percent from its last quote in New York late Tuesday.
London morning fix at $910.75 an ounce. COMEX May silver down 30.0 cents, or 2.4 percent at $12.370 an ounce, following gold. Ranged $12.760 to $12.290 - the weakest level since February 3. COMEX estimated 9:00 am volume at 5,648 lots. Spot silver at $12.40 an ounce, down 2.4 percent from its Tuesday finish. Silver fixed in London at $12.61 an ounce.
NYMEX April platinum down $6.30 to $1,045.50 an ounce as a weaker stock market hurt industrial metals. Spot platinum at $1,040.00 an ounce, down 0.3 percent from its previous close. June palladium down $2.85, or 1.4 percent, at $195.00 an ounce, tracking platinums weakness. Spot palladium at $192.50 an ounce, up 0.5 percent from its late Tuesday New York quote.
Comments
Comments are closed.