Gold Futures Decline on Profit Taking

Gold futures fell on Wednesday as the investors went for profit taking after three consecutive bullish sessions at Comex. The precious metal remained volatile in the whole session and closed lower as it was looking for direction in search of news headlines.

Gold futures contract for June delivery declined $0.40 to settle at $1,660.30 per ounce on the Comex division of the New York Mercantile Exchange. Gold jumped 1 percent in Tuesday’s session on its safe haven status in reaction to increase in yields of Spanish and Italian bonds.

Analyst, Jim Steel from HSBC commented, “Increases in euro-zone debt concerns have triggered capital flows into U.S. Treasurys, which in turn boosted the U.S. dollar and weighed on gold. It also weakens other commodities, such as oil, which tend to have a positive price relationship with gold, however, it may be the yellow metal’s decoupling from risk assets and resuming its more traditional role of safe haven,”

Among other base metals, copper futures contract for May delivery fell 0.3 percent or $0.01 to $3.64 per pound while silver futures for the same month declined 0.5 percent or $0.16 to settle at $31.52 per ounce.

Platinum futures for July delivery slipped $9.40 to $1,584.30 per ounce while palladium futures for June delivery declined $0.25 to settle at $636.60 per ounce for the day.


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