MW: Gold prices unable to sustain gains for a second day
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- Gold prices on Tuesday reversed an earlier climb towards $1,200 an ounce, with the metal unable to sustain a second day of gains that came amid rising global concerns.
Gold for June delivery, the most-active contract, fell $2.80 to $1,191.20 an ounce on the Comex division of the New York Mercantile Exchange.
On Monday, the contract rose $17.90, or 1.5%, to end at $1,194 an ounce.
"A broadly firmer dollar tone and broad weakness across commodity markets cut into gains after earlier longs were encouraged to book profits. However, safe-haven activity is anticipated on dips as European debt concerns remain, along with a rise in geopolitical risk after North Korea went on a military footing," said analysts at Action Economics.
During the weekend, Spain seized a small savings bank, CajaSur, offering an example of what euro-zone governments are contending with as they try to stem a debt crisis.
And, North Korea has been accused of sinking a South Korean warship in March, leading to plans for a joint military exercise by the U.S. and South Korea.
On Wall Street, stocks were poised for a sharp opening drop, with the Dow Jones Industrial Average (DJIA 10,067, -126.82, -1.24%) likely to fall below 10,000 for the first time since February.
Markets at large were consumed by a combination of worries, including Korean tensions, Spanish bank concerns and a rising inter-bank lending rate, with the major indexes down steeply on Monday.
