Gold’s Iraq premium continued to evaporate yesterday, as prices
dropped to four-month lows after US armoured units drove almost
unopposed to the edge of Baghdad and fought to seize the city’s
airport.
Investors ditched some safe-haven assets accumulated during the run
up to the 15-day-old conflict and showed optimism that the war
could be over soon by wading back into stocks and pushing the
dollar higher.
„Continued belief that the war in Iraq will be over very quickly is
keeping the yellow metal under pressure and as a result we start to
find the true value of gold,“ wrote James Moore of
TheBullionDesk.com.
COMEX June gold ended down $4,70, or 1,4%, at $325,70/oz, bottomused jaw crusher price malaysiaing
at $324,00, its lowest value since December 5, off a high of
$330,90.
The contract has shed $15, or 4,5%, since hitting a 13-day high at
$339,40 on Tuesday.
Futures cut losses before midday as Wall Street gave back some of
Wednesday’s rally.
Reports of explosions heard inside a US military base in Japan also
caught jumpy gold traders off guard. There were no recrusher gypsum price stone crusher indiaports of
injuries from the blasts, which Japanese police said might be a
protest by militants opposed to the Iraq war.
Another gold support was a comment by a UN official in North Korea
that the standoff over North Korea’s nuclear programme has the
potential to develop into war.
„The North Korean story came out and that’s when we popped up,“
said a floor broker.
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The advance of tanks and troops from the US 3rd Infantry Division
met little resistance as they continued their northward thrust to
within 10 km (6 miles) of the edge of Iraq’s capital.
The euro fell to $1,0732/36 Thursday afternoon from the last close
at $1,0772/77. The Dow Jones industrial average was up four points,
cooling from Wednesday’s 215-point surge.<br zenith hp 500 cone crusher stone crusher india/>
Oil prices fell back below $30 a barrel on the US advance in recent
days, also denting sentiment about gold, historically seen as
insurance against inflation and market turmoil.
Spot gold was quoted at $324,95/5,65, down from $329,70/0,20 at
Wednesday’s close. London gold dealers fixed the afternoon spot
reference price at $323,70/oz.
With the safe-haven factor disappearing, dealers were trying to
figure the equilibrium price for gold, based on other bullish
fundamentals like weak economic growth, and the lowest US interest
rates in more than 40 years.
The $330 level was considered pivotal, having been key resistance
before gold broke higher in December on its way to a 6-1/2 year
high in February at $391,70, basis May futures.
Physical demand from traditional gold markets in Asia, India and
the Middle East is an important support now. Buying from these
price-sensitive consumers dried up in gold’s rally, but has picked
up now that gold is down $65 from its highs.
May silver managed a 1,1-cent gain to $4,413/oz, touching $4,47 and
$4,365. Spot silver was at $4,41/43, up from $4,39/41 late
Wednesday and the $4,37 fix.
NYMEX July platinum tumbled $12,20 to $609,70/oz. It bottomed at
$602,50, its lowest since January 15. Spot platinum was at
$617,00/622,00.
June palladium fell $3,50 to $175,50, making a contract low at
$174,00. Spot palladium is around 5-1/2 year lows and was quoted at
$173,00/178,00.
The supply/demand outlook is gloomy for palladium. Hit by weak auto
sales, carmakers have cut back sharply on purchases of platinum
group metals for use in catalytic converters. – Reuters.