Feb. 24 (Bloomberg) -- Gold fell in New York as the highest prices in seven weeks spur sales by some investors. Silver declined for the first time in a week.
The 14-day relative-strength index for gold topped 70 for the second straight day, a signal to some traders that the price is poised to fall. The metal slid today after touching $1,418.80 an ounce on the Comex, the highest since Jan. 3. Before today, gold climbed for seven straight sessions.
“Gold has had a nice, uninterrupted run the past week, so it’s not surprising to see a pause or some profit-taking,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago.
Gold futures for April delivery fell $1.50, or 0.1 percent, to $1,412.50 at 12:10 p.m. in New York, after rising as much as 0.3 percent and dropping 0.4 percent. Before today, the price gained 28 percent in the past year, after touching a record $1,432.50 on Dec. 7.
Gold’s losses may be limited as investors seek a haven from financial turmoil in the Middle East, Zeman said
“There’s still a lot of geopolitical tension and unrest in the Middle East, so gold is going to continue to work its way higher,” he said.
Gold held in exchange-traded products rose 0.6 metric ton to 2,015.39 tons yesterday, rebounding from the lowest level since June 7, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,114.6 tons in December. Silver ETP assets advanced 61.39 tons to 14,713.45 tons, the highest level since Jan. 21, data from four providers show.
Silver futures for May delivery fell 22.4 cents, or 0.7 percent, to $33.08 an ounce on the Comex. On Feb. 22, the price reached $34.315, the highest since March 1980. The commodity has doubled in the past 12 months. The metal climbed to a record of $50.35 in January 1980.
Palladium futures for June delivery rose $1.85, or 0.2 percent, to $778.15 an ounce on the New York Mercantile Exchange. Platinum futures for April delivery rose $5.20, or 0.3 percent, to $1,781.90 an ounce.
Before today, palladium and platinum, mostly used in pollution-control devices in vehicles, fell this week as crude oil topped $100 a barrel during unrest in the Middle East that threatened to disrupt supply.
“Part of the reason we’ve seen such deep turn-downs in platinum and palladium in recent days is attributed to the fact that $5 per gallon gasoline is seen as not quite the stuff that robust automotive sales are made of,” said Jon Nadler, an analyst at Kitco Inc. in Montreal.
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