Gold plunges after three-week gain; rally seen overdone
February 24, 2014 9:12 am
Gold futures dived after its three-week peak as a technical gauge waved a reversal and on worries the higher prices will wound physical demand in Asia. Silver, platinum, and palladium dropped.
Bullion to be delivered immediately missed 0.4% to $1,318.79 per ounce and was set at $1,321.57 at 10:07 a.m. in Singapore. Prices touched $1,332.45 on February 18, the most since October 31. The almost 14-day strength index was at 68.9 on Feb. 21, near to the level of 10 that flags to those who analyze charts the prices may reverse.
Gold is surging for a second monthly progress, following a weaker data urged concern the US recovery may be losing momentum as the Federal Reserve trims asset buying. In January, sales of previously owned US homes fell to the lowest in more than a year despite severe winter weather. Deadly protests in Ukraine and Thailand injured emerging market assets already wounded by stimulus cuts, escalating haven demand.
SPDR Gold Trust assets, the largest exchange-traded product supported by bullion, increased for the first time in a week of Feb. 21, while volumes for Shanghai’s measure spot contract went down that day as metal to be delivered immediately listed at a discount to London prices. Gold to be delivered in April decreased 0.2% to $1,321.30 per ounce on the Comex. The net-long position gained 31% to a 16-week peak of 90,942 futures and options in the week of Feb. 18, as shown in the US Commodity Futures Trading Commission data.
Silver slipped 1.3% to $21.5224 per ounce, set at $21.6104. Last week, prices listed a third weekly advance in the longest stretch since August. Platinum sank 0.3% to $1,424.69 per ounce, while palladium fell 0.5% to $736.90 per ounce.
The material has been provided by InstaForex Company – www.instaforex.com
Gold futures dived after its three-week peak as a technical gauge waved a reversal and on worries the higher prices will wound physical demand in Asia. Silver, platinum, and palladium dropped.
Bullion to be delivered immediately missed 0.4% to $1,318.79 per ounce and was set at $1,321.57 at 10:07 a.m. in Singapore. Prices touched $1,332.45 on February 18, the most since October 31. The almost 14-day strength index was at 68.9 on Feb. 21, near to the level of 10 that flags to those who analyze charts the prices may reverse.
Gold is surging for a second monthly progress, following a weaker data urged concern the US recovery may be losing momentum as the Federal Reserve trims asset buying. In January, sales of previously owned US homes fell to the lowest in more than a year despite severe winter weather. Deadly protests in Ukraine and Thailand injured emerging market assets already wounded by stimulus cuts, escalating haven demand.
SPDR Gold Trust assets, the largest exchange-traded product supported by bullion, increased for the first time in a week of Feb. 21, while volumes for Shanghai’s measure spot contract went down that day as metal to be delivered immediately listed at a discount to London prices. Gold to be delivered in April decreased 0.2% to $1,321.30 per ounce on the Comex. The net-long position gained 31% to a 16-week peak of 90,942 futures and options in the week of Feb. 18, as shown in the US Commodity Futures Trading Commission data.
Silver slipped 1.3% to $21.5224 per ounce, set at $21.6104. Last week, prices listed a third weekly advance in the longest stretch since August. Platinum sank 0.3% to $1,424.69 per ounce, while palladium fell 0.5% to $736.90 per ounce.
The material has been provided by InstaForex Company – www.instaforex.com
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