SYDNEY(MarketWatch) — Gold futures edged lower in electronic trading Friday, as the dollar strengthened and took some of the shine off metals-buying.
Gold for August delivery GC1Q +0.08% dropped 80 cents, or 0.1%, to $1,542.10 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
Silver tracked gold lower, with the July contract SI1N +0.12% losing 7 cents, or 0.2%, to $37.35 an ounce. Read >>
Gold is many things: It’s pretty, it’s reluctantly used by central banks as a reserve, it’s resistant to chemicals, and it’s overvalued. It is, in the current situation, not a good short. Read >>
Gold declined in New York as some investors sold the metal after prices this week climbed to a one-month high and near a record.
Gold futures this week traded within 1.5 percent of the all-time high. Prices were little changed yesterday after the European Central Bank signaled its approval of Greek bond rollovers. Federal Reserve Chairman Ben S. Bernanke yesterday said the “frustratingly slow” U.S. recovery warrants sustained monetary stimulus while predicting that growth will gain speed in the second half of the year. Read >>
Gold dropped under $1540 per ounce, witnessing persistent selling pressure after failing to hold on above $1550 yesterday.
The stock markets were mixed around the world with a bearish bias and Gold was looking weak on profit selling pressure and slightly overbought technical cues. Crude oil prices dropped as well and traders covered their recent longs in Gold as the US dollar came off its lows. Read >>
Gold gained for a third consecutive day in London trading, among continued concern about Europe’s debt crisis coupled with signs of a slowing US economy and a weakening dollar, all spurring demand for gold as an alternative investment. Read >>