BS: Gold Falls From Record, Heads for Fourth Weekly Gain in N.Y.
By Pham-Duy Nguyen
May 14 (Bloomberg) -- Gold futures fell as some investors sold bullion that reached a record today and is headed for a fourth straight weekly gain.
“Gold is maybe a little too popular,” said Barry James, who manages $2 billion at James Investment Research Inc. in Xenia, Ohio. “We might get a pullback, and that would be an opportunity to increase positions.”
The precious metal reached an all-time high of $1,249.70 an ounce in New York, the third time prices touched a record this week. The 14-day relative strength index for gold futures neared 70 today, a signal that prices are poised to fall.
Gold futures for June delivery slipped $7.70, or 0.6 percent, to $1,221.50 an ounce at 11:07 a.m. on the Comex in New York. A settlement at that price would leave prices up 0.9 percent for the week. Gold for immediate delivery reached an all-time high of $1,249.40.
“It’s either blow hard through the highs or stop the rally and sell off,” said Frank McGhee, the head dealer at Intergrated Brokerage Services LLC in Chicago. “We’re going to see a big profit-taking day.”
--Editors: Steve Stroth, Michael Arndt.
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
