Gold futures were fluctuating Tuesday as the dollar was mixed against major world currencies. April-dated gold futures gave up some of their earlier gains, but they were still rising $3.40 to $921.10 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $911.60 and as high as $924.50.
Silver prices were down 18 cents to $12.86 an ounce, and copper was advancing 8 cents to $1.85 a pound. The upcoming G-20 summit in London is putting gold under pressure. The message out of the conference is expected to be positive, and Philip Klapwijk, chairman of GMFS, believes gold is in for a "spell of weaker prices ... with the next $40 low and not up." Global economic uncertainty typically means an upside for gold as investors seek a safer alternative investment. However, if the G-20 yields a hopeful message to help soothe the markets, then investors could pull their money out of gold and move it into other sectors. Klapwijk says this "correction could be healthy and give a good buying opportunity ... as there is an underlying interest in gold." Another issue currently weighing on gold is demand from India and Turkey. India reported that the country imported no gold for a second month as high prices hurt demand. "Some of the bread and butter demand like India has been dire," says Klapwijk. " We are paying a lot of attention. The market is under stress at high price levels."