By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures declined Monday as news Col. Moammar Gadhafi may be negotiating his resignation and departure from Libya pressured the metal and other commodities such as oil.
Gold for April delivery (GCJ11 1,426, -8.10, -0.57%) retreated $5.40, or 0.4%, to $1,429.20 an ounce on the Comex division of the New York Mercantile Exchange.
The metal closed at $1,434.50 an ounce on Monday after it reached an intraday high past $1,445 an ounce.
Silver tracked gold lower, leaving a three-decade best.
A spokesman with Libya’s opposition forces said Gadhafi is trying to negotiate his resignation and safe departure from the North African country, according to media reports.
Libya has been engulfed in violence for nearly three weeks, and Gadhafi has reportedly lost control of cities in the oil-rich east.
Protesters in Yemen, Bahrain and other countries in the Middle East and North Africa demonstrated Tuesday.
“As long as uncertainty persists on markets and the situation remains unclear, the price of gold should remain well supported. The dip ... is therefore likely to be of a temporary nature,” analysts with Commerzbank said in a note to clients.
Silver for May delivery (SIK11 3,581, -6.00, -0.17%) was off 10 cents, or 0.3%, to $35.78 an ounce.
Copper for March delivery (HGH11 428.20, -3.10, -0.72%) retreated 4 cents, or 1%, to $4.27 a pound.
Other news besides moderating oil prices may be influencing copper in recent sessions, analysts at MF Global said in a note to clients Tuesday.
Copper inventories at the London Metal Exchange have been increasing, they said.
“In addition, participants may be getting wary about Chinese growth prospects after a series of pronouncements in recent weeks by the government saying that their emphasis would be on moderating growth and combating inflation going forward,” they added.
Copper has lost in recent days as investors feared higher oil prices could hamper the economic recovery, dampening prospects for the industrial metal.
