Gold drops as US consumer confidence soars
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Xinhua, December 28, 2011
Gold futures on the COMEX Division of the New York Mercantile Exchange extended its losing streak into a fourth session on Tuesday, as consumer confidence soared in the United States during the month of Dec., which helped reduce demand for gold as a safe-haven.
The most active gold contract for Feb. delivery dropped 10.5 dollars, or 0.7 percent, to 1,595.5 dollars per ounce.
According to a report released by the Conference Board, confidence among U.S. consumers rose to an eight-month high in Dec. , which was near a post-recession peak.
A trader said that the confirmation of gradual improvement of the U.S. economy helped lift market sentiment, dulling safe-haven demand for precious metals.
Meanwhile, a steady dollar also helped keep a lid on gold prices; the ICE U.S. Dollar Index was recently little changed from its levels late Friday in New York.
The gold futures have been dropping for four consecutive sessions as investors squared their books in light holiday trading.
The gold market volatility will be extremely high as nervous traders and investors alike are less than confident with the global financial leadership, a trader warned.
Silver for March delivery lost 34.4 cents, or 1.2 percent, to 28.74 dollars per ounce. Platinum for Jan. delivery added 4.4 dollars, or 0.3 percent, to 1,433.9 dollars per ounce.
