Gold prices on COMEX are edging slightly lower in Asia, following the near three percent rise in the prices during the week as the traders lock in some gains ahead of the weekends. The metal is showing signs of getting fatigued after hitting all time highs in the middle of the month and the recovery above $1200 per ounce in the current week is highly susceptible to a downward correction, given the latest price action.
The yellow metal failed to match up the strength in the other risky assets yesterday and eased in the early Asian trades as the Dollar appreciated. The metal, which reached a record $1,249.40 an ounce on May 14, dipped under $1210 per ounce as the traders covered up longs amid a bullish frenzy in the Asian stocks and a mild rebound in the US dollar.
However, a notable slide might not be on cards as investors are still concerned about sovereign risk. Media reports quoted U.S. Treasury Secretary Timothy F. Geithner saying that the U.S. and Europe are in “broad agreement” on the need for tighter market regulation to help calm volatile markets.
The expiry of the June Gold series is approaching on COMEX and the August contract should depict the real undertone in the markets now. August-delivery gold has dipped 0.3 percent to $1,211 an ounce on the Comex in New York. US dollar has appreciated after yesterdays sell off and quotes at 1.2294 against the Euro. Watch out for the prices to test lows around $1200 for the June futures.
