Gold Pares Back Biggest Rally In 3-weeks

Gold declined in New York on investor sales after the biggest rally in almost three weeks.

Futures jumped 1.1 percent yesterday, the most since Jan. 10, on demand for a haven with a shrinking U.S. economy. Growth will bounce back in the current quarter, economists at JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley say.

“Gold lacks a convincing catalyst near term to take it convincingly higher and instead remains susceptible to opportunistic selling,” Xiao Fu, an analyst at Deutsche Bank AG, said in a report dated today.

Gold futures for April delivery dropped 0.3 percent to $1,676.40 an ounce at 7:01 a.m. on the Comex in New York. Prices are up less than 0.1 percent this month, after three months of declines.

Platinum futures fell 0.8 percent to $1,675.50 an ounce and are heading for an 8.6 percent gain for January, the biggest monthly advance in a year. Palladium dropped 1.8 percent to $737.75 an ounce, narrowing this month’s gain to 4.9 percent.

Silver for March delivery declined 0.4 percent to $32.035 an ounce and is up 6 percent for January.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell