Gold for April delivery shed $1.50 to settle at $1,774.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,781 and as low as $1,762.60 an ounce while the spot price was falling $5, according to Kitco's gold index.
George Gero, senior vice president with RBC Wealth Management, believes that gold prices will still find the momentum to reach $1,800 by June. "Reluctance of G20 action [to offer the IMF additional funding] continues to keep new buyers at bay, however some consolidation after a few weeks of up move is not negative," said Gero in a premarket research note. "Low interest rates, two continents with fiscal stimulus, another two continents with geopolitical fears and a large selloff don't seem to be in the cards," he added in a later report. Jon Nadler, senior metals analyst with Kitco Metals, is still eying waning physical demand in the metal in India and the U.S. Despite this, Nadler sees bullish sentiment for gold rising to a level that, he believes, signals a correction is due. "Bullish sentiment is approaching certain levels (above 90% according to trade-futures.com's Daily Sentiment Index) from which previous sharp corrections have ensued," he said. Gold mining stocks were largely following gold prices and other commodities lower. Among the exceptions were Eldorado Gold (EGO), rising 1.6% to $15.32, and Silver Wheaton (SLW), rising 0.3% to $38.89. Among the biggest laggards in the sector were Iamgold (IAG), down 2.7% to $15.47, and Novagold Resources (NG), which was falling 2.5% to $8.47. -- Written by Ross Tucker in New York.
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