MORE "GROUNG BREAKING" NEWS ON GOLD!!!
NEW YORK, April 13 - Gold futures in New York sagged on Thursday, touching a new low for the week, as speculative liquidation and positioning before a holiday weekend dominated early trading.
Prices hovered about $10 below the 25-year high hit on Tuesday above $608 an ounce, but gold stayed supported by a lack of aggressive short selling before the Easter weekend, amid worries over costly crude oil and U.S.-Iran tensions.
"We're just hovering on almost no volume," said a dealer at a precious metals trading desk in New York.
"We saw guys trying to get out, square their positions on concerns about weak longs, but I don't think you'd want to be short this market before the weekend. You're going to run a big risk of decreased liquidity at the end of the day as the London market tries to go home early."
New York metals futures markets will shut on Good Friday and reopen on Monday. London metals trading will be closed on Monday.
"We're just hovering on almost no volume," said a dealer at a precious metals trading desk in New York.
"We saw guys trying to get out, square their positions on concerns about weak longs, but I don't think you'd want to be short this market before the weekend. You're going to run a big risk of decreased liquidity at the end of the day as the London market tries to go home early."
New York metals futures markets will shut on Good Friday and reopen on Monday. London metals trading will be closed on Monday.
In other precious metals, silver, platinum and palladium all backpedaled quietly with gold.
By 10:13 a.m. EDT, June delivery gold on the New York Mercantile Exchange's COMEX division had lost $4.70, or 0.8 percent, to $596.60 an ounce, in a $603-$594 range.
On Tuesday, June gold surged as high as $608.40 -- a peak for futures prices since January 1981, extending its sizzling rally of the past five years.
By 10:13 a.m. EDT, June delivery gold on the New York Mercantile Exchange's COMEX division had lost $4.70, or 0.8 percent, to $596.60 an ounce, in a $603-$594 range.
On Tuesday, June gold surged as high as $608.40 -- a peak for futures prices since January 1981, extending its sizzling rally of the past five years.
Liquidation by speculators may slap gold lower before the holiday, market sources said, but the bull run was expected to continue afterward, fueled by robust investment demand.
Support should hold at $590, while resistance hovers above $605.00
"Activity is expected to be muted but firm as most global participants head into a three- or four-day weekend, and it is unlikely for them to build up significant short positions, especially with the Iranian situation balancing on a knife edge," Standard Bank said in a report.
Iran said it would ignore renewed international calls to halt uranium enrichment, casting a shadow over Thursday's visit for nuclear talks by the head of the U.N. atomic watchdog.
"Activity is expected to be muted but firm as most global participants head into a three- or four-day weekend, and it is unlikely for them to build up significant short positions, especially with the Iranian situation balancing on a knife edge," Standard Bank said in a report.
Iran said it would ignore renewed international calls to halt uranium enrichment, casting a shadow over Thursday's visit for nuclear talks by the head of the U.N. atomic watchdog.
The United States and other Western nations accuse Iran, the world's No. 4 oil producer, of using its civilian nuclear program as cover to build weapons, a charge Iran denies. ( Isn't it strange how we blame Countries instaed of actual people for these types of things)?
Dampening some interest in gold was crude oil slipping off a recent high of nearly $70 per barrel to hold around $68, while the dollar gained against the euro after a report showed solid U.S. retail sales in March.
Estimated COMEX volume was a modest 10,000 lots at 10 a.m.
"While consolidation, and even a correction, is entirely possible at any time, we expect investors to use any weakness to add to positions," said John Reade, an analyst with UBS.
"While consolidation, and even a correction, is entirely possible at any time, we expect investors to use any weakness to add to positions," said John Reade, an analyst with UBS.
Spot gold sank to $592.30/593.10 an ounce, compared with $597.50/8.30 Wednesday in New York. London's afternoon fix by bullion dealers on Thursday fell to a distasteful $593.00.
UBS held its short-term targets for gold and silver at $610 an ounce and $14 an ounce, respectively, within one month, and at $630 and $16 within three months.
Author -GR.
posted by Gold Futures @ 3:07 AM
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