By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures edged higher in electronic trading Monday, as investors returned to the metal despite selling in other commodities.
Gold for August delivery GC1Q -0.03% added $3.50, or 0.2%, to $1,504.40 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
Silver diverged, with the July contract SI1N -2.29% falling 55 cents, or 1.6%, to $34.09 an ounce.
Gold was sold off along with other commodities late last week, after the International Energy Agency said it would release more crude-oil supplies in the market to offset lost Libyan production.
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Oil extended its slide Monday, with Nymex crude futures for August delivery slipping 48 cents, or 0.5%, to $90.68, during Asian trading hours. Read more about oil.
Analysts at MF Global said lower energy prices “should be constructive for metals, as this will reverse some of the inflationary forces in the economic system and perhaps persuade central bankers to hold off on raising interest rates.”
“On the other hand, if and when funds liquidate energy positions, it is inevitable that some of the selling spills over into other groups,” the analysts said.
The wider metals complex traded mixed Monday, with copper the leading decliner.
Copper for September delivery HG1N -0.99% , the most active contract, sank 4 cents, or 1.0%, to $4.06 a pound.
September palladium PA1U -0.81% shed $3.25 or 0.4%, at $728.25 an ounce, while sister-metal July platinum PL1N -0.06% added $2.50, or 0.2%, at $1,680.10 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
