Back
23 Sep 2013
Gold sank on Friday on Bullard’s quotes
FXstreet.com (Athens)- The spot price of gold collapsed on Friday, as at the same day the “greenback” edged up from previous week's seven-month low, helped by comments from Federal Reserve officials suggesting a reduction in stimulus could be much closer than many thought.
The Dollar was last little changed versus the yen at 99.37 yen, while the euro also traded flat versus the greenback at $1.3519, having hit a 7-1/2 month high on Thursday. On the week, the euro was up 1.7 percent, its best weekly showing since February. The dollar index was last up 0.1 percent at 80.451, a little above Wednesday's seven- month trough of 80.060. Brent crude oil rose on Friday and front-month U.S. crude fell heading into expiry as traders took profits on the spread between the two contracts. What’s more, Brent crude for November rose 46 cents to settle at $109.22. Finally, the U.S. crude for October, which expired on Friday, fell $1.72 to close at $104.67.
On the opposite side, gold tumbled across the board losing 2.5 percent on Friday as institutional investors sold aggressively after the Saint Louis Fed president, Bullard, said the U.S. central bank might move next month to reduce stimulus spending that has bolstered bullion for years. Spot gold fell 2.4 percent to $1,331.20 an ounce. U.S. Comex gold futures for December delivery settled down $36.80 an ounce at $1,332.50, with trading volume at about 10 percent above its 30-day average. Among other precious metals, silver slid 5.3 percent to $21.82.
The Dollar was last little changed versus the yen at 99.37 yen, while the euro also traded flat versus the greenback at $1.3519, having hit a 7-1/2 month high on Thursday. On the week, the euro was up 1.7 percent, its best weekly showing since February. The dollar index was last up 0.1 percent at 80.451, a little above Wednesday's seven- month trough of 80.060. Brent crude oil rose on Friday and front-month U.S. crude fell heading into expiry as traders took profits on the spread between the two contracts. What’s more, Brent crude for November rose 46 cents to settle at $109.22. Finally, the U.S. crude for October, which expired on Friday, fell $1.72 to close at $104.67.
On the opposite side, gold tumbled across the board losing 2.5 percent on Friday as institutional investors sold aggressively after the Saint Louis Fed president, Bullard, said the U.S. central bank might move next month to reduce stimulus spending that has bolstered bullion for years. Spot gold fell 2.4 percent to $1,331.20 an ounce. U.S. Comex gold futures for December delivery settled down $36.80 an ounce at $1,332.50, with trading volume at about 10 percent above its 30-day average. Among other precious metals, silver slid 5.3 percent to $21.82.