Gold for April delivery was shedding $9.20 at $1,777.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,784.40 and as low as $1,772.40 an ounce while the spot price was falling $3.60, according to Kitco's gold index.
Shortly after U.S. markets opened, it was reported that the final University of Michigan/Thomson Reuters index of consumer sentiment for February came in at 75.3, up from 75 the prior month, and was the highest reading since Feb. 2011. This exceeded the average economist expectation of a reading of 73 according to a Thomson Reuters survey, and rebounds from a decline to 72.5 in February's preliminary reading.
Jon Nadler, senior metals analyst with Kitco Metals, said despite today's slight pullback, there are more European debt issues looming that are likely to keep gold prices up. "At this point, the pressure remains high not only on Greece to 'perform' following its receipt of the Eurogroup's second bag of money, but also on the IMF," said Nadler. "The institution is seen as having to commit a whole lot more cash in order to avert certain economic outcomes (already manifest) in the European theater. China and Japan have both signaled that they are willing to help...but [IMF chief Christine Lagarde] will have to be more than...guarded when it comes to signaling that perhaps as much as $500 billion in additional lending resources is still needed by her institution.' Nadler acknowledged that gold prices are trading counter to their typical trend. "Historically speaking, with gold making robust advances, one would not be also reading about the S&P 500 trading near a ten-month high, or about the Dow Jones Industrial Average reaching its best level since May of 2008 (13,000!), but quite the opposite. This, however, appears to be the new 'normal' for the time being," he said. Gold mining stocks were trading mixed Friday. Kinross Gold (KGC) was falling 1.2% at $11.27 while Randgold Resources (GOLD) was down 0.6% at $116.13. Agnico-Eagle (AEM) was up 0.2% at $37.64 and Eldorado Gold (EGO) was up 1.7% at $15.14. -- Written by Ross Tucker in New York.
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