BLBG: Gold Futures Fall From One-Week High as Euro, Equities Rebound
May 27 (Bloomberg) -- Gold futures fell from a one-week high as a rebound in the euro eroded demand for the precious metal as a haven against financial turmoil in Europe.
The euro climbed as much as 1.8 percent against the dollar and European equities gained. Gold has rallied 11 percent this year, reaching a record $1,249.70 an ounce on May 14, amid Europe’s sovereign-debt crisis.
“With the overseas markets up, you might see a pullback in gold,” said Marty McNeill, a trader a R.F. Lafferty Inc. in New York. “There are still too many things going on in the world for the real long-term holders to sell gold, though. You still need to protect yourself.”
Gold futures for August delivery fell 90 cents to $1,214.40 an ounce on the Comex in New York. Earlier, the metal reached $1,220.60, the highest level since May 19.
Stocks in Asia and the U.S. also rallied as China said it remains a long-term investor in Europe. The Reuters/Jefferies CRB Index of 19 raw materials rose for a second straight day.
“Gold is steady,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “The only change in gold is derived from the strength in the euro, which shall be fleeting.”
U.S. Secretary of State Hillary Clinton said in Seoul that it’s not too late for North Korea to make amends for sinking a South Korean warship.
“The easing of the tension in Korea might bring in profit- taking,” McNeill said.
Silver futures for July delivery rose 16.2 cents, or 0.9 percent, to $18.468 an ounce on the Comex.
Platinum futures for July delivery gained $22.60, or 1.5 percent, to $1,552.90 an ounce on the New York Mercantile Exchange.
Palladium futures for September delivery climbed $16.55, or 3.7 percent, to $465.05 an ounce.
