U.S. gold futures ceased its rise yesterday, falling from 16-year highs
U.S. gold futures ceased its rise yesterday, falling from 16-year highs, as the US dollar rally fuelled profit-taking.
February contract gold futures on the New York Mercantile Exchange's COMEX division ended down $3.60 to close at $452.30 an ounce, after trading between $448.70 and $458.70.
Analysts note that as soon as the dollar started to gain strength, the metals collapsed.
Scott Meyers, an analyst at Pioneer Futures, said, "Gold can't hold up without the euro being strong, and the same goes for silver. This is an international monetary issue that has nothing to do with supply and demand."
Speculative buying helped lift platinum futures to their highest since April, however, as funds rotated into a metal that had been lagging gold's recent advance. However, silver futures tumbled back below $8 an ounce.
The dollar rallied across the board as dealers pocketed profits in other currencies, which have climbed to highs in recent days.