Metals News
Gold Continues to Slide on Upbeat U.S. Economic Data, Stronger Dollar
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09:59AM
Mar 29,2011
Source:SMM

CHICAGO, Mar. 29  -- Gold futures on the COMEX Division of the New York Mercantile Exchange retreated for the third session in a row on Monday, weighed by the better-than- expected U.S. economic reports. And a stronger dollar also forced gold prices to retreat.

The most active gold contract for April delivery dropped 6.3 dollars, or 0.4 percent, to 1,419.9 dollars per ounce.

The U.S. Commerce Department announced Monday that the Consumer spending jumped by 0.7 percent in February from the previous month, the eighth straight increase and largest since October, indicating that Americans have been gaining confidence in the overall health of the economy and started tapping their savings.

A trader mentioned that the slightly higher-than-expected consumer spending data helped to dampen the gold market sentiment, as flight-to-quality buying slackened. And the lack of significant development from Libya also helped to keep a lid on prices.

Some analysts noted that the gold market was also pressured by the stronger-than-expected U.S. pending home sale report released this morning. And the newly-gained strength in the greenback also triggered initial weakness.

However, the slump in gold has been tempered by lingering worries about the Middle East, as situation there is far from over, a trader added.

May silver rose 3.9 cents, or 0.1 percent, to 37.088 dollars. April platinum increased 2.2 dollars, or 0.1 percent, to 1,747.8 dollars per ounce.

 

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