Gold Prices Slide as Investors Lock in Profit
Chicago (May 6) Gold prices slipped Tuesday, as investors took profits from the previous session's three-week high.
Gold for June delivery, the most actively traded contract, closed down 0.7 cent, or 0.1%, to settle at $1,308.60 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices for the precious metal settled at $1,309.30 an ounce Monday, the highest close since April 14.
Investors have been seeking out gold as the conflict in Ukraine escalates, believing gold would hold its value better if the conflict spreads and other assets decline in price. While fighting continued in eastern Ukraine on Tuesday, some investors saw Monday's gains as an opportunity to cash in.
"This matter is not going away soon and will likely see an escalation in tensions. Such will also limit selling pressure in the gold market," said Jim Wyckoff, a senior analyst at Kitco, in a note to investors.
The conflict has loosened Kiev's grip on Ukraine's east ahead of two key votes: a May 11 referendum in areas under pro-Russian militants' control on the question of the region's future, and the May 25 Ukrainian presidential election.
In other precious metals, palladium rose 0.2% to close at $818.40 a troy ounce, its highest level since August 2011, as investors worried about sanctions against Russia and a 15-week-long miners' strike in South Africa, the top two producers of the precious metal. Platinum rose 0.7% to $1,458.10 an ounce. Silver ended higher for a third session, recovering from nine-month lows. Silver for June delivery closed up 0.4% at $19.645 a troy ounce.