Gold gave up most of its gains on Monday as brief foray into the $1,300s was seen as a good level to take some money off the table.
Gold for June delivery on the Comex division of the New York Mercantile Exchange ended at $1,295.80 per ounce, up $5.30 for the session but well off of the intraday peak of $1,306.00, which was as 15-month high.
“Following last week’s strength in gold prices in all currencies, some modest correction is certainly in order,” Dennis Gartman, editor of the Gartman Letter, said.
“Those periods of weakness, however, should be viewed as opportunities by those not yet involved to become so, and for we who are already heavily involved to become even more so,” Gartman added.
But retail investors remain fairly skeptical of the rally that began in December. This group has taken many lumps during the four year bear market, Peter Hug, Kitco Metals Global Trading Director, noted.
“Retail has a tendency to liquidate into strength, as a ‘I finally got out, at a break-even’ psychology. It’s a fair psychology, as retail investors have tried to catch the bottom only to be rewarded with a continued re-lapse to lower levels on every rally. Retail selling suggests that the move has more to run,” Hug said.
It was a light data and volume day due to the fact that much of Asia was closed for the Golden Week holiday, while the UK and other markets in Europe were closed for a public holiday.
In the wider-markets, the dollar was 0.68 percent softer against the euro, while the Dow Jones industrial average and S&P 500 were up 0.57 percent and 0.66 percent respectively.
As for the other preciously metals, Comex silver reversed sharply, closing down 13.7 cents at $17.682 per ounce. Earlier in the session, the grey metal rose to $18.060.
Platinum for July delivery on the Nymex settled up $8.00 at $1,086.40 per ounce, while the most-actively traded palladium contract ended at $624.50 per ounce, down $2.90.
The post Gold unable to hold $1,300/oz on afternoon profit-taking appeared first on The Bullion Desk.
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Source: Bullion Desk News
