NEW YORK (AP) — Gold prices retreated Tuesday, pressured by a firmer dollar and a surge in stocks.
Gold for June delivery slipped $5.60 to settle at $953.30 an ounce on the New York Mercantile Exchange. But prices finished well off their intraday low of $936.60.
Dave Meger, a gold analyst at Alaron, partly attributed the decline in prices to some profit taking following a 3 percent jump last week. The profit taking was spurred by a firmer dollar and a rally on Wall Street, he said.
Gold prices have climbed in recent weeks as the dollar falls against other currencies. Investors use gold as a hedge against inflation and a weak greenback. On Tuesday, however, the dollar gained ground against the euro, which put pressure on gold.
At the same time, demand for gold as a safe-haven asset declined as stocks soared. Investors' appetite for risk increased following a report showing an improvement in consumer confidence. A private research group said consumer sentiment soared in May to the highest level since September.
A more upbeat mood on Main Street is a positive sign because it indicates that consumers might be willing to increase their spending. Consumer spending accounts for more than two-thirds of U.S. economic activity.
All the major stock indexes rose more than 2.3 percent in late afternoon trading, with the Dow Jones industrials adding more than 190 points.
Other metals were mixed. July silver fell 9.5 cents to $14.60 an ounce, while July copper futures rose 4.35 cents to $2.1410 a pound.
Oil prices rose on the Nymex as the consumer confidence data helped offset ongoing concerns about tepid energy demand.
Light, sweet crude for July delivery gained 78 cents to $62.45 a barrel. Gasoline futures rose 1.11 cents to $1.8218 a gallon, while heating oil futures rose less than a penny to $1.5710 a gallon.
Grain prices were mixed on the Chicago Board of Trade.
July wheat futures slipped 0.5 cent to $6.12 a bushel, while corn for July delivery fell 2.75 cents to $4.2750 a bushel.
July soybeans jumped 19.5 cents to $11.8550 a bushel.
by the associated press
Gold for June delivery slipped $5.60 to settle at $953.30 an ounce on the New York Mercantile Exchange. But prices finished well off their intraday low of $936.60.
Dave Meger, a gold analyst at Alaron, partly attributed the decline in prices to some profit taking following a 3 percent jump last week. The profit taking was spurred by a firmer dollar and a rally on Wall Street, he said.
Gold prices have climbed in recent weeks as the dollar falls against other currencies. Investors use gold as a hedge against inflation and a weak greenback. On Tuesday, however, the dollar gained ground against the euro, which put pressure on gold.
At the same time, demand for gold as a safe-haven asset declined as stocks soared. Investors' appetite for risk increased following a report showing an improvement in consumer confidence. A private research group said consumer sentiment soared in May to the highest level since September.
A more upbeat mood on Main Street is a positive sign because it indicates that consumers might be willing to increase their spending. Consumer spending accounts for more than two-thirds of U.S. economic activity.
All the major stock indexes rose more than 2.3 percent in late afternoon trading, with the Dow Jones industrials adding more than 190 points.
Other metals were mixed. July silver fell 9.5 cents to $14.60 an ounce, while July copper futures rose 4.35 cents to $2.1410 a pound.
Oil prices rose on the Nymex as the consumer confidence data helped offset ongoing concerns about tepid energy demand.
Light, sweet crude for July delivery gained 78 cents to $62.45 a barrel. Gasoline futures rose 1.11 cents to $1.8218 a gallon, while heating oil futures rose less than a penny to $1.5710 a gallon.
Grain prices were mixed on the Chicago Board of Trade.
July wheat futures slipped 0.5 cent to $6.12 a bushel, while corn for July delivery fell 2.75 cents to $4.2750 a bushel.
July soybeans jumped 19.5 cents to $11.8550 a bushel.
by the associated press
No comments:
Post a Comment