Gold futures trade to $1,742 before profit taking moves prices lower

London (Apr 8)  After hitting the highest price gold futures have traded to in the last seven years, $1742 per ounce, profit taking has taken gold prices below $1700. In trading overseas yesterday for a brief instant gold broke the former ceiling of $1703, creating a new high, which will now become short-term resistance at $1742.

As of 4:30 PM EST gold futures are currently trading down by $11.30 and fixed at $1682.60. Spot gold is currently fixed at $1650.86, which is a net decline of approximately nine dollars on the day. This decline incorporates tremendous dollar weakness which has softened the impact of traders pulling profits. Currently the dollar index is off by 0.82% and fixed at 99.93.

According to the KGX (Kitco Gold Index) earlier today spot gold was only seven dollars on the day. Most importantly that included dollar weakness which allowed spot gold to gain $14.90 on the day. However, when added to price weakness due to profit taking which amounted to $21.90, the end result is a seven-dollar decline.

KitcoNews