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(Kitco News) -- Gold prices were probably due for some type of profit-taking pullback, but the longer-trend uptrend remains intact, analyst say.
Around mid-week, gold was poised to break through to record highs.
On the Comex division of the New York Exchange, the December contract on Wednesday hit a peak of high of $1,264.70 an ounce. This brought it within striking distance of the $1,266.50 record for any most-active contract, which was hit by the August futures back on June 21. Spot gold also came close to its record listed by one price vendor at $1,265.30.
But December gold fell on Thursday and then dipped some more Friday to a low
of $1,237.90, before bouncing again. At 2:30 p.m. EDT (1830 GMT), the December futures were down $5 for the day at $1,246 an ounce.
“I think it is perhaps some profit-taking and technical selling,” said Carlos Sanchez, director of risk management with CPM Group.
Technically, some selling set in when the market was not able to forcibly break above $1,260, technicians said. Often, futures traders might exit some positions to capture short-term gains whenever they sense momentum might be abating around chart resistance. (more)
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