MW: Gold backs off record; silver at 30-month high
Most metals post losses
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures edged down Wednesday as some investors and metals traders hesitated in the wake of the previous session’s record closing high atop $1,270 an ounce.
Silver, however, kept its rally going, posting a fresh 30-month high. Other metals were lower, with palladium, Tuesday’s top percentage gainer, coming off a four-month high.
Gold for December delivery lost $1.60, or 0.1%, to $1,270.10 an ounce on the Comex division of the New York Mercantile Exchange. The contract on Tuesday finished at a record: $1,271.70 an ounce.
“The price rally has not only reduced the risk of profit-taking by speculative financial investors but also means that more investors could now jump on the bandwagon and keep the rally going,” analysts at Commerzbank said in a note to clients.
SPDR Gold Trust (GLD 124.03, +0.01, +0.01%) , the largest exchange-traded fund backed by gold, on Tuesday reported inflows of 6 metric tons to a total of 1,298 metric tons, some 22 metric tons short of the fund’s record level at the end of June.
Meanwhile, silver reached its highest level since March 14, 2008. December silver lately added 6 cents, or 0.3%, to $20.49 an ounce.
“Besides greater investor interest, silver is also profiting from the expectation of higher industrial demand, which accounts for more than half of total demand for silver,” the Commerzbank analysts said.
Meanwhile, the dollar index (DXY 81.39, +0.31, +0.39%) , which compares the greenback with a basket of six other currencies, was up 0.6% at 81.57.
A stronger dollar is generally negative for gold and other commodities, as it makes them more expensive for holders of other currencies and reduces their investment appeal.
The dollar gained on the yen following foreign-exchange intervention by Japanese authorities overnight. See more on movements in the dollar against the yen and other major global currencies.
Rounding out the early action in metals, December palladium retreated $2.45, or 0.4%, to $551.35 an ounce, as October platinum sank $2.60, or 0.2%, to $1,591.80 an ounce.
