Gold edges lower as safe haven bid eases

08:07, November 25, 2010      

Email | Print | Subscribe | Comments | Forum 

Gold futures on the COMEX Division of the New York Mercantile Exchange lost some momentum on Wednesday after jumping the most in three weeks in the previous session, as a flight to safety fizzled a little bit. Silver retreated and platinum barely changed.

The most active gold contract for December delivery inched down 4.6 U.S. dollars, or 0.3 percent, to 1,373.0 dollars per ounce.

The U.S. Commerce Department announced on Wednesday that the year-over-year rate for core personal consumption expenditures in October, which exclude food and energy, added a record low of 0.9 percent.

The poor reading fed into growing concerns that inflation is stabilizing at a level too low for the comfort of the Fed, and also offered investors less reason to purchase the bullion, which is usually bought as a hedge against inflation.

The U.S. Labor Department announced on Wednesday that last week 's initial jobless claims plunged 34,000 to 407,000, which is much less than economists' forecast of 435,000, and helped alleviate market concerns over the sluggish economic recovery, eroding gold' s safe-haven appeal.

Traders noted that the market was also hammered by investors' profit-taking ahead of the Thanksgiving holidays, as well as a slightly stronger greenback.

Silver futures for December delivery trimmed 4.4 cents, or 0.2 percent, to 27.528 dollars per ounce. January platinum added 0.7 dollars, or 0.04 percent, to 1,658.4 dollars per ounce.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion