Gold Futures Close Lower on Profit Taking, Dollar Rebound

The prices of gold futures on the COMEX Division of the New York Mercantile Exchange closed lower on Wednesday due to profit taking and Dollar rebound. Silver and platinum also went down.

Gold price for February delivery dropped 9.20 dollars, or 1.1 percent, to 811.30 dollars an ounce. March silver fell 3.6 cents to 10.269 dollars per ounce. January platinum lost 1.90 dollars, settled on 869.70 dollars per ounce.

Analysts said that investors took profit before the Thanksgiving holiday and weekend. Gold has gained more than 10 percent in the recent six trading days.

Dollar rebounded quickly from a three-week low against the Euro on Wednesday, reducing the gold's hedge appeal, which was considered to contribute the losses of gold.

Crude oil futures on New York Mercantile Exchange climbed more than 4 percent Wednesday on speculation that a big interest rate cut in China and economic stimulus plans in Europe will boost energy demand, which limited the losses of gold futures because investors generally consider gold as a hedge option against inflation.

Source: CRIEnglish