Gold Suffers Fall As Rising Stocks Weaken Demand

NEW YORK (Scrap Monster) : Gold futures is reported to have dropped as the rising stocks weakened the investor demand for safe-haven asset of the yellow metal. Gold for April delivery on Comex division on Friday was found to be the most active contract, settling at $ 10.20 or 0.8 % at $ 1,321.60 a troy ounce at the New York Mercantile Exchange. According to reports, gold in February witnessed a rise of 6.6 %, which marks a 9.9 % increase since the beginning of 2014. This rise came after the market recovery after its worst year since 1981.

Owing to speculations on the US economy recovery and financial stability in emerging markets including Ukraine, Argentina and Turkey, investors was found to regain their interest to gold recently. Some traders on Friday opted to grab gains in gold by decreasing their holdings. According to Mr. Frank Lesh, a broker at FuturePath Trading, the rally was developing in a particular way and he sees people taking profits.

According to analysts, the uncertainty of US monetary policy along with Yellen’s testimony on Thursday pressurized gold. According to reports, US equities on Friday rallied to its highest with S & P 500 reaching a high of 1867.95. Friday’s equity rally offset was affected by weak Dollar. Euro was also found to climb highest against dollar as unexpected euro-zone inflation reading came out. April gold traded at $US1,321.60, falling down by $US10.20, while May silver settled at $US21.241, again down by11.1 cents. April platinum settled $US1,446.80, down $US6.60; Range $US1,441.10-$US1.