- CNTV English - CCTV News

Homepage > News > Biz >

Gold snaps 3-day rally as dollar rebounds

05-12-2011 09:09 BJT

CHICAGO, May 11 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange edged lower, ending a three- day winning streak on Wednesday, pressured by newly-gained strength in the greenback and investors' profit-taking. Meanwhile, the sharp losses in energy market also helped drag down the precious metals.

The most active gold contract for June delivery lost 15.5 dollars, or 1 percent, to 1,501.4 dollars per ounce.

A trader mentioned that the strong rally in the dollar as well as the fact that cautious investors chose to book in some profit after gold's 3-day rally both served as major catalysts driving down the precious metals' prices.

The dollar index, which measures the greenback's performance against a basket of six rival currencies, further hiked on Wednesday, eroding gold's appeal as an alternative asset.

Meanwhile, the weaker energy prices also attributed to another mammoth sell-off in the precious metals markets, after government data showed rising U.S. crude oil and gasoline inventories.

The sharp losses in crude oil price prompted traders to scramble to liquidate position in the precious metals market, as they have been spooked by last week's major market correction.

"The tension in the precious metals remains high as traders and investors alike are exiting positions quicker to book profits when available," said Mike Daly, a gold specialist with PFGbest here in Chicago.

Silver for July delivery plunged 2.971 dollars, or 7.7 percent, to 35.515 dollars per ounce. Platinum for July delivery dropped 23. 1 dollars, or 1.3 percent, to 1,777.8 dollars per ounce.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program