Wednesday, 4 February 2015

Gold Prices Decline

Prices of gold prices dropped more than one percent because of developments in Greece which touched off a recovery in stock markets worldwide.

The precious metal benefited in early trading from profits in various commodities but interest in gold waned later.

Spot gold went down 0.9 percent ($1,263.80 per ounce) after touching a trough of $1,255.21. US gold futures (April delivery) were down 1.3 percent ($1,260.30 per ounce).

Market analysts said there was a bit of repositioning from safe havens with $1,280 being removed. The 50 percent retracement could have set off selling orders.

Gold prices increased over eight percent last month which was the strongest in three years although expectations for interest rate increases in 2015 restricted possible gains.

Gold remains sensitive to data as investors are speculating on when the Fed will possibly bring up rates.

New inflows were seen in gold-supported ETFs with holdings (New York exchange-listed SPDR shares) reaching its highest since last October.

For the rest of precious metals, silver increased 0.9 percent ($17.36) per ounce. Platinum increased one percent ($1,235.25) per ounce while palladium climbed up 0.1 percent at $783.75 per ounce.


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