Gold pares losses as dollar reverses early gains

08:50, May 13, 2011      

Email | Print | Subscribe | Comments | Forum 

Gold futures on the COMEX Division of the New York Mercantile Exchange ended moderately higher on Thursday, trimming earlier losses, as bargain hunters stepped in and the U.S. dollar reversed its early gains.

The precious metal plunged earlier in the session amid a broad- based commodity sell-off, pressured by early strength in the greenback.

The most active gold contract for June delivery added 5.4 dollars, or 0.4 percent, to 1,506.8 dollars per ounce.

The dollar continued to hike earlier in the session, as the Fed 's second round of unconventional monetary easing, known as quantitative easing 2 (QE2), will soon expire.

The strong rally in the dollar heavily weighed on dollar- denominated commodities such as gold, as it makes them more pricy for holders of other currencies.

The gold market was pressured when news reports indicated that the People's Bank of China continued its efforts to curb the country's inflation, said Mike Daly, a gold specialist with PFGbest here in Chicago.

The news "sent the gold market downward as traders sought to take profits and liquidate long positions," Daly added.

But gold and silver started to pare losses as the greenback gave up some earlier gains.

Meanwhile, the precious metal also gained some support from increasing bargain-hunting, as many investors believed the deep correction in the precious metal market has been overdone.

The news that President Barack Obama and the Republican leadership agreed the U.S. debt ceiling needs to be raised has also sent the gold market on the rise, Daly noted.

Silver for July delivery lost 71.8 cents, or 2 percent, to 34. 797 dollars per ounce. Platinum for July delivery dropped 6.8 dollars, or 0.4 percent, to 1,771 dollars per ounce.

Source: Xinhua
BRICS Leaders Meeting 2011
Japan in aftershocks
  Weekly review  
May 05   Fight against terrorism should strike at roots
April 29   'Human rights overriding sovereignty' only a mask of hegemony
May 04   Human rights dialogues need mutual understanding
May 03   Highlights of China's sixth national census results
May 07   The week in pictures
May 03   Expats seeking opportunities in China
May 04   Some Chinese colleges face decreasing enrollment, struggle to survive
May 05   French leader: China's peaceful rise puts world at ease
April 29   Ten most valuable cultural relics displayed at Xi'an exposition park
May 03   US kills Bin Laden, ending 10-year manhunt


  • Do you have anything to say?


Special Coverage
  • Al-Qaeda Chief Osama bin Laden dead
  • BRICS Leaders' Meeting 2011
Major headlines
Editor's Pick
  • Senior Chinese leader urges Hunan to align economic growth with environmental protection
  • Chinese vice president calls for efforts to maintain Macao's prosperity
  • Quake museum opens in Qingchuan, SW China
  • Cast members promote movie 'Kung Fu Panda 2' in Cannes
  • China vows to enhance cooperation with quake-hit Japan
  • China-EU strategic dialogues highly necessary, senior officials say
Hot Forum Dicussion