Reuters – U.S. precious metals futures plunged on Monday as funds and speculators bailed out of the market across the board in a massive profit-taking spree that came after prices hit long-term highslast week, traders said.
Gold, after spiking to a 26-year high on Friday, fell 3.8 percent in the aggressive sell-off by investors which was also fueled by a higher dollar and weaker oil prices.
Other metals posted nearly double-digit percentage losses by one stage in the morning but later trimmed losses. Silver settled down 6.3 percent, while platinum lost 2.6 percent and palladium 5.9 percent by the close.
“The correction … is simply a reflection of profit-taking by funds, a bit of a stronger dollar, though the fundamentals of it have not changed, and perhaps a return to a more seasonally normal and more placid gold market, post-Indian-wedding season,” said Jon Nadler, analyst with bullion dealer Kitco.
June gold futures <GCM6> tumbled $26.80 on the New York Mercantile Exchange’s COMEX division to close at $685 an ounce, after trading from $721.50 to $679.
On Friday, futures shot to their highest since January 1980, at $732, thanks to a recent trend of buying as a hedge against global tensions, soaring crude oil and a weak dollar.
