Gold suffers first drop in nine days

11:13, April 27, 2011      

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Gold futures on the COMEX Division of the New York Mercantile Exchange dropped on Tuesday amid weak sentiment, representing the first decline in nine trading days, and the price even fell below 1,500 U.S. dollars per ounce during the intraday trading.

The most active gold contract for June delivery lost 5.6 U.S. dollars, or 0.37 percent, to 1,503.5 dollars per ounce.

Mike Daley, a senior gold analyst with PFGBEST, said in a report that some traders chose to err on the side of caution and book their profits after the gold set new all-time highs on Monday, resulting in the reverse of gold price.

Mike added that both gold and silver have been in unchartered and technically overbought territory. Gold price has been all the way on the rise in the recent trading and topped the records 11 times so far this month.

Moreover, the gold was also pressured by a climb in the consumer confidence index reported by U.S. Conference Board on Tuesday. The index hit 65.4 in April, as compared with an upwardly revised 63.8 in March.

However, analysts remained mostly upbeat over the prospects for gold and silver going forward. A trader said that the metals bull is healthy, with silver fully capable of hitting 50 dollars per ounce.

Meanwhile, market awaited a policy announcement from the Federal Reserve due Wednesday as well as comments from the top U.S. central banker Ben Bernanke for clues as to whether the central bank will end its Treasury-buying program.

Silver for May delivery slumped 2.099 dollars, or 4.45 percent, to 45.05 dollars per ounce. July Platinum also tumbled 22.7 dollars, or 1.24 percent, to 1,805.4 dollars.

Source: Xinhua
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