US gold futures turned lower on Friday, after rising to record highs earlier in the session, weighed down by options-related selling and investors' need for cash due to an equity markets sell-off. COMEX June gold down $1.90 at $1,227.30 an ounce. Ranged from $1,217.60 to $1,249.70 - an all-time high.
Investor risk appetite drops because of lingering Greek debt contagion fears and economic uncertainties, said traders. Margins-related selling hit the metal as investors tapped into liquid gold market for cash due to equity markets' sell-off - Bill O'Neill at commodities firm LOGIC Advisors.
Investors take profits after the metal rallied sharply to record highs this week due to uncertainty that a European rescue will be effective, said analysts. Sizeable sale of put options by a trading house triggered options-related selling in gold futures, said COMEX gold floor trader Jonathan Jossen.
Investment demand was strong. The exchange-traded fund SPDR Gold Trust said holdings held at record high 1,209.499 tonnes. Comex estimated 11 am volume at 184,425 lots. Spot gold at $1,225.05, versus $1,231.83 late in New York's previous session. COMEX July silver down 30.4 cents, or 1.6 percent, at $19.195 an ounce, as investors take profits heavily on the coattails of gold.
Ranged $18.975 to $19.735. Comex estimated 11 am volume at 34,827 lots. Spot silver at $19.13 versus $19.41 late in prior session. July platinum down $28.20, or 1.6 percent, at $1,711.20 an ounce on broad-based precious metal weakness. Spot platinum at $1,699.50. June palladium down $17.30, or 3.2 percent, at $526 an ounce as weaker economic sentiment hurt demand expectations for autocatalyst. Spot palladium at $519.
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