Gold Futures Pull Back in New York

Futures were declining $6.40 to $907.20 an ounce at the Comex division of the New York Mercantile Exchange.
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Gold futures were slipping Monday despite global panic over the swine flu.

Futures were declining $6.40 to $907.20 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $907.00 and as high as $918.00 so far during the session.

Gold prices initially rose on fears that the swine flu could cause a worldwide pandemic and halt economic recovery. James Moore, analyst at thebulliondesk.com, says these fears will only stall a recovery in U.S. and European markets but the "broader picture does appear to be stabilizing."

As economies show signs of recovery and inflation fears lessen, demand for the safe haven metal decreases. Moore says gold futures will continue to head lower, "before enticing fresh buying."

Today is the beginning of India's gold buying festival, but declining futures indicate that most physical demand has been satisfied. Gold previously saw a support level at $865, mainly due to physical buying. Historically, demand decreases after India's festival and during the summer months. Moore predicts gold could slide to around $845 or $850, a psychological level that could inspire more buying.

Silver futures were rising by 9 cents to $13.01 an ounce, and copper was down 9 cents at $1.97 a pound.

In gold stocks,

Newmont Mining

(NEM) - Get Report

was trading flat at $41.28, while

Barrick Gold

(ABX)

was slipping 1.7% to $30.39. Shares of

Yamana Gold

(AUY) - Get Report

were little changed at $8.25.

Agnico-Eagle Mines

(AEM) - Get Report

was declining 1.7% to $49.20, and the

Gold Shares

(GLD) - Get Report

exchange-traded fund was flat at $89.46.

Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.