Gold after trading at the record high level during the last week, turned down on Monday, as the traders move to conventional safe heaven currency the US dollar. Gold settled at a peak of $1,474.10 per ounce on Friday.
A portfolio manager at OptionSellers.com, James Cordier , stated that traders’ cash on profits as the precious metal achieved the record high, and reports about the Washington negotiations to control the US debt also affect the gold prices.
He added that gold would not add much in the current year, it might advance to $1,500 in the coming few months, but not more than that.
The record price on Friday was achieved due to concerns over the government shutdown, which than avoided through a deal, that strengthened the dollar. Meanwhile, President Barack Obama was expected to reveal a plan to cut the US debt.
The metal jagged a 3.20% weekly gain, which was the highest five days rise since early December and its third successive weekly gain.
On the Comex division of the New York Mercantile Exchange Gold futures for June delivery shed 0.40% or $6.00 to settle at $1,468.10 per ounce. Silver edged higher, to hold it above $40.00 per ounce.
Analysts at the Goldman Sachs sated that other metals such as copper and platinum futures would follow the bullish trend as oil prices did because lack of availability due to the earthquake in Japan, mostly platinum over large disclosure to global automobile production.
Copper for May retreated $0.40 or 0.90%, to settle $4.46 per pound on the Comex division of the New York Mercantile Exchange, while July platinum reached $19.30 or 1.10%, to $1,792.80 an ounce. Meanwhile, June palladium fell 0.80% or $5.95 to close at $788.25 per ounce.
