Gold update: Sixth day of falls in New York
Gold has fallen in New York for a sixth straight session as some investors sold the precious metal to cover losses in equity markets. Silver also declined.
By Bloomberg staffLast Updated: 4:30PM GMT 02 Mar 2009
Gold futures for April delivery fell $2, or 0.2pc, to $940.50 an ounce at 10.10am on the Comex division of the New York Mercantile Exchange. The metal dropped 6pc last week.
In London, gold for immediate delivery lost $1.88, or 0.2pc, to $940.47 an ounce in early afternoon trading. The precious metal has earlier risen by as much as 1.7pc.
In February gold climbed by 1.5pc, the fourth consecutive monthly gain, while the Standard & Poor’s 500 Index fell by 11pc. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, reached a record 1,029.3 metric tons on February 26.
“As things get a little uglier in the stock market, we might see some selling of gold for margin calls,” said Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago. “There’s some weight on gold now.”
Silver futures for May delivery declined 20.5 cents, or 1.6pc, to $12.905 an ounce. The metal rose 4.3pc in February.
News, comment and analysis on gold on our new dedicated page
No comments:
Post a Comment