Thursday, February 2, 2012

Why Gold prices down february 2 2012

Gold prices down february 2 2012 : Gold may decline for the first time in three days in New York as a stronger dollar spurs some investors to sell the metal after its rally to an eight-week high.

Gold for April delivery fell 0.1 percent to $1,747.60 an ounce by 8 a.m. on the Comex in New York. Prices earlier today reached $1,756.70, the highest since Dec. 8. Bullion for immediate delivery was up 0.1 percent at $1,744.93 in London.

After the strong rally, people are opting for a more cautious investment approach to gold, The stronger dollar is also “a factor which keeps the price of gold in check.

The dollar climbed against the euro as Greece struggled to reach an agreement with bondholders on cutting the nation’s debt burden. Demand for physical gold from India has been “significantly above average” so far this year

The metal climbed 10 percent in 2011, an 11th consecutive annual gain, as investors sought to diversify from equities and some currencies. Gold reached a record $1,923.70 in September and holdings in bullion-backed exchange-traded products are within 1 percent of December’s all-time high. Assets increased 4.4 metric tons to 2,376.2 tons yesterday, data compiled by Bloomberg show.

Silver for March delivery fell 0.6 percent to $33.59 an ounce. It’s the best-performing precious metal this year with a gain of 20 percent. Palladium for March delivery was little changed at $696.55 an ounce. Platinum for April delivery was 0.1 percent lower at $1,621.80 an ounce. For the latest updates on the stock market, visit Stock Market Today

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