By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures pulled back from seven-week highs on Friday, with investors taking a breather from buying on the precious metal’s safe-haven status during recent unrest in the Middle East and North Africa.
Gold for April delivery (GCG11 1,413, 0.00, 0.00%) , the most active contract, fell 0.8% or $11.00 to $1,405.13 an ounce on the Comex division of the New York Mercantile Exchange.
Silver’s March contract (SIH11 3,289, -27.60, -0.83%) slipped 65 cents, or 1.9%, to settle at $32.52 an ounce.
“A combination of reduced investor appetite amid improved macro-economic sentiment and rising interest rates suggests duller times ahead for gold,” analysts at Barclays Capital said in a note Friday.
“The tightening cycle, which is already under way in emerging economies and which we now expect to kick in sooner than expected in the West, does not bode well for gold either,” the analysts said.
Copper for March delivery (HGH11 435.50, +2.85, +0.66%) rose 2 cents, or 0.4%, to $4.34 a pound.
April platinum (PLJ11 1,801, +14.20, +0.80%) gained $4.90, or 0.3%, to $1,791 an ounce, while sister metal palladium’s March contract (PAH11 785.25, +7.50, +0.96%) gained $2.30 cents, or 0.02%, to $780.05 an ounce.
“Flight-to-safety given ongoing unrest in the Middle East, a weaker dollar, weaker equity markets and rising oil prices have lifted gold and silver prices but concerns over growth in China have weighed upon the platinum group of metals,” analysts at Barclays Capital said.
“However, we maintain a positive outlook across platinum and palladium as market balances are set to tighten this year on the back of slower palladium stock releases from Russia, modest supply growth from South Africa and continued recovery in industrial demand,” they added.
