Posted by
alfredlester on Saturday, May 08, 2010 11:00:40 PM
NEW YORK – A split in metals trading continued Friday as investors seeking safety bought gold, while platinum and palladium dipped on overseas economic worries.
Gold has become a refuge for risk-averse investors in recent days as stock markets plunged.
The Dow Jones industrial average again fluctuated wildly Friday, and traded down as much as 279 points before recouping much of its losses. In afternoon trade it was down about 140 points, having taken a brief and harrowing dive of nearly 1,000 points the day before. European markets all tumbled.
Gold for June delivery rose $13.10 to settle at $1,210.40 an ounce. It has risen $41.20, or 3.5 percent, over the past three days.
George Gero, vice president at RBC Global Futures in New York, said Asian and European investors that would normally turn to their local currencies when selling off stocks and other riskier assets are buying gold instead. That's because the value of their currencies have fallen against the dollar due to fears that Greece's debt problems will spread across Europe.
Friday's gains in gold were kept somewhat in check by investors looking to take some profit before the weekend, Gero said.
Silver and copper both rose as well, after falling in recent days. July silver jumped 93.6 cents, or 5 Business Card Holders.3 percent, to settle $18.451 an ounce. Copper rose 2.75 cents to $3.1445 a pound.
Platinum and palladium, which have industrial uses and are more sensitive to the economic cycle, continued to stumble. Investors are concerned that debt problems in Greece might spread to other countries like Spain and Portugal and upend a global economic recovery.
July platinum fell 70 cents to $1,665.80 an ounce after recovering some losses late in trading. Palladium for June delivery dropped $3.90 to $510.20 an ounce.
Energy prices have also been hurt by the economic and debt worries that have jolted stock markets. Benchmark crude for June delivery fell $2 to settle at $75.11 a barrel on the New York Mercantile Exchange.
June heating oil dropped 3.42 cents to $2.0795 a gallon, while gasoline fell 3.12 cents to $2.1251 a gallon. Natural gas, which is hovering near its lows for the year, rose 8.6 cents to $4.015 per 1,000 cubic feet.
Gain and bean prices rose. Wheat for July delivery rose 2.25 cents to $5.105 a bushel, while corn rose 0.75 cents to $3.72 a bushel. July soybeans rose 6 cents to settle at $9.60 a bushel.
Gold up; Platinum, palladium down on Euro worries