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.
For the coming week, Nadler is looking for "downside if we close under the 900 number.
Also looking at the economic calendar and a resolution for General Motors ( GM) and Chrysler ( DAI). Any decision, he says, would help platinum and palladium. Gold stocks were sinking. Newmont Mining ( NEM) was falling 2.8% to $45.41. Yamana Gold ( AUY) was down 4% to $8.72. Barrick Gold ( ABX) was giving up 3.2% to $31.50, and the SPDR Gold Shares ( GLD) ticked slightly down to $88.67. Agnico-Eagle Mines ( AEM) was lower by 3.5% to $52.74. TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009 , is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. To see how your portfolio can use this research, click here now!