Gold Futures Fall, Ending Rally, as Dollar Gains; Silver Rises


مشرف وإستشاري هندسة المناجم
12 مارس 2007
مجموع الإعجابات
Nov. 26 (Bloomberg) -- Gold fell for the first time in six days, halting the longest rally since July, as a rebound in the dollar slashed demand for the precious metal as an alternative investment. Silver gained and platinum was little changed.
The U.S. currency jumped as much as 1.6 percent against the euro today. Gold often moves in the opposite direction of the dollar. Before today, gold had dropped 2.1 percent this year as the dollar gained 12 percent versus the euro.
“Gold has run out of gas,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York. “It’s closely correlated with the dollar today.”
Gold futures for February delivery dropped $5.10, or 0.6 percent, to $815.40 an ounce at 11:18 a.m. on the Comex division of the New York Mercantile Exchange. The metal touched a record $1,033.90 on March 17. Until today, gold had risen for five straight sessions, the longest rally since July 15.
Gold also fell today as investors sold the metal after prices surged 12 percent in the previous five sessions, Selkin said.
“It had a big run up so it’s not surprising that people are looking to take some profits,” Selkin said. “It moved up very quickly.”
The metal’s seven-day relative strength index, a measure of how fast prices have moved, jumped to 78.5 yesterday. Readings higher than 70 signal prices may be poised to drop.
Crude Oil Rises
The losses for gold may be limited today as crude-oil prices move higher, increasing demand for the metal as a hedge against inflation, said Ron Goodis, a retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey.
Crude oil on the Nymex added as much as 5.1 percent today. Some investors buy precious metals to preserve purchasing power as higher energy prices increase consumer costs.
“Inflation will continue to make gold bullish,” Goodis said.
Silver futures for March delivery added 6.5 cents, or 0.6 percent, to $10.37 an ounce on the Comex.
Platinum futures for January delivery fell 40 cents to $871.20 an ounce on the Nymex. Palladium for March delivery lost $4.05, or 2 percent, to $193.65 an ounce. Both metals are used to make car-pollution control devices.
Johnson Matthey Plc, the producer of a third of all catalytic converters, said second-half earnings will be 5 percent to 15 percent lower than a year earlier as car sales have slumped. Automakers account for more than 60 percent of global platinum consumption, according to the company

مواضيع مماثلة