Gold Falls as Euro, Oil Decline From Records; Silver Slides
Gold Falls as Euro, Oil Decline From Records; Silver Slides
by takeshitsai on Wed Apr 23, 2008 9:42 pm
Gold fell after energy costs declined and the euro eased from a record against the dollar, eroding the appeal of the precious metal as an alternative investment. Silver also dropped.
Crude-oil futures fell from a record $119.90 a barrel reached yesterday, and the euro traded below $1.60. UBS AG said gold will trade at $850 an ounce in three months, down from a forecast of $1,000. Gold hit a record $1,033.90 an ounce on March 17, when the euro and crude set previous records.
``Gold is slipping back,'' said Stephen Platt, a futures strategist at Archer Financial Services in Chicago. ``Some of it is linked to a pullback in crude and pressure on the euro. In terms of upside potential, gold is limited.''
Gold futures for June delivery fell $14.80, or 1.6 percent, to $910.40 an ounce at 9 a.m. on the Comex division of the New York Mercantile Exchange. Before today, the metal gained 10 percent this year.
Silver futures for May delivery dropped 44.4 cents, or 2.5 percent, to $17.38 an ounce. Before today, the metal climbed 19 percent this year.
Silver, which has wider industrial applications than gold, has tumbled 5.2 percent in the past five sessions. The price may drop to $15.50 over the next 12 months, Goldman Sachs Group Inc. said in a report on April 17.
Crude-oil futures fell from a record $119.90 a barrel reached yesterday, and the euro traded below $1.60. UBS AG said gold will trade at $850 an ounce in three months, down from a forecast of $1,000. Gold hit a record $1,033.90 an ounce on March 17, when the euro and crude set previous records.
``Gold is slipping back,'' said Stephen Platt, a futures strategist at Archer Financial Services in Chicago. ``Some of it is linked to a pullback in crude and pressure on the euro. In terms of upside potential, gold is limited.''
Gold futures for June delivery fell $14.80, or 1.6 percent, to $910.40 an ounce at 9 a.m. on the Comex division of the New York Mercantile Exchange. Before today, the metal gained 10 percent this year.
Silver futures for May delivery dropped 44.4 cents, or 2.5 percent, to $17.38 an ounce. Before today, the metal climbed 19 percent this year.
Silver, which has wider industrial applications than gold, has tumbled 5.2 percent in the past five sessions. The price may drop to $15.50 over the next 12 months, Goldman Sachs Group Inc. said in a report on April 17.
