Gold reversed its upward direction

image Monday bullion weakened abolishing earlier gains as the dollar rebounded on short-covering and dragged down other commodities’ prices and equities.

Spot gold lost 0.2% falling to $1,002.85 at about 2:24 GMT, after gaining 0.4% to a high of $1,008.70 per ounce earlier on Monday. New York’s notional close was $1,004.85. Bullion hit $1,011.55 on Friday, its highest since March 2008.

Gold prices topped $1,000 per ounce last week and closed above that level on Friday for the first time since March 2008, as investors sold the dollar to buy higher-yielding and riskier assets on growing optimism about the outlook for the global economy.

The US currency rose broadly on Monday with the Australian and New Zealand dollars falling about 1 percent against the greenback as investors covered short dollar positions, making waves across other markets. The dollar index , a gauge for the greenback’s performance against other six major currencies,rose 0.4% to 76.917 off its one-year low of 76.457 struck on Friday.

US gold futures for December delivery GCZ9 fell by 0.2% to $1,004.7 per ounce, sliding from an earlier high of $1,010.8. Futures stood as $1,006.40 an ounce on the COMEX division of the New York Mercantile Exchange. Friday’s session high was $1,013.70, the highest price since February, 20.

According to a weekly report by the U.S. Commodity Futures Trading Commission, noncommercial net long US gold futures positions rose to 224,676 lots in the week to September, 8 from 184,501 lots.
The SPDR Gold Trust GLD’s holdings remained unchanged at 1,077.63 tonnes as of September, 13 from the previous business day.

As for the other precious metals, drop in gold prices pulled their prices down. Thus, silver moved down by 1% to $16.61 from $16.74. On Friday it hit its highest level since early August 2008 at $16.97.
At the same time, platinum also weakened by 1% to $1,301.50 from $1,315.50, after touching a 1-year high of $1,317.50 an ounce earlier on Monday.

Thus, the following prices were seen at the metal market at about 2:24 GMT:

Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1003.05 -1.80 -0.18 13.96
Spot Silver 16.62 -0.12 -0.72 46.82
Spot Platinum 1299.50 -16.00 -1.22 39.43
Spot Palladium 290.00 0.00 +0.00 57.18
TOCOM Gold 2927.00 -21.00 -0.71 13.76 30258
TOCOM Platinum 3784.00 2.00 +0.05 42.68 6951
TOCOM Silver 482.80 -10.20 -2.07 51.21 225
TOCOM Palladium 845.00 -13.00 -1.52 53.64 130

TOCOM prices are in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices are in $ per ounce.


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