Gold Futures Drop Under $900
Gold futures were under pressure in New York Friday and falling under $900 an ounce.
April futures were losing $11.40 to $896 an ounce at the Comex division of the New York Mercantile Exchange. The most actively traded contract was June, which was down $11.80 to $897.10 an ounce. The contract traded as low as $896.50 and as high as $911.80 so far during the session. Silver futures were flat at $12.74 an ounce, and copper futures were down 1 cent at $1.99 a pound.
The decline in gold came after word that the International Monetary Fund might sell 403 tons of gold to free up $12 billion to $13 billion to help poorer nations. With the G-20 dedicating more funds to the IMF, giving the group $1 trillion in aid power, investors are more confident in a global economic recovery and are steering away from the safe haven of gold.
"[We are seeing] a defensive stand in the metal because of the G-20 and IMF talk," says Jon Nadler, senior analyst at Kitco.com. "[We] really expected a strong week, but it didn't [happen] because at the end of the day people felt that progress was not being made beyond the mid-$900s so investors took some profits. Under $900 for a couple of days then we can look lower to the $875s."If gold holds at a lower level, that could bring buyers back into the market, which would help put a floor under the price.
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