Mon, 17 May 2021

Gold falls after becoming overbought

Xinhua
20 Apr 2021, 05:30 GMT+10

CHICAGO, April 19 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the precious metal bounced off its highest gain since December.

The most active gold contract for June delivery fell 9.6 U.S. dollars, or 0.54 percent, to close at 1,770.6 dollars per ounce.

Gold traded at a much higher than normal level last week in reaction to geopolitical strife and weaker bond yields, and dropped Monday after reaching an overbought state.

Nevertheless, weaker U.S. dollar and lower Treasury bonds yields supported gold, preventing it from falling deeper.

Some market analysts hold gold has the ability to push higher amid rising tensions between the United States and Russia, while some others cite encouraging economic data in China and the United States as a dampening factor for gold.

Silver for May delivery fell 26.8 cents, or 1.03 percent, to close at 25.837 dollars per ounce. Platinum for July delivery fell 2.2 dollars, or 0.18 percent, to close at 1,206.5 dollars per ounce.

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