Gold tumbles $20 on profit-taking frenzy

摘要

Gold futures on the COMEX division of thenNew York Mercantile Exchange fell roughly $20nThursday, as profit-takers moved in to cash outntheir gains, but market analysts think the preciousnmetal -- especially given the volatility in thenMiddle East and soaring oil prices --- will still holdnits own above $1,400/oz for the indefinite future.nGold for April delivery, the active month, tumbledn$21.30 to $1,416/oz Thursday, after reaching anday’s high at $1,424.70/oz and after opening thenThursday session at $1,437.70/oz. In after- hoursnelectronic trading, April gold was down $22.9 atn$1,414.80/oz as of 2:50 pm EST, after hitting annintra-day high at $1,436.90oz, and bouncing offna low at $1,412.20/oz. A trader told Platts thatnThursday’s plunge in gold prices was due to profittakingnand that the selling streak began in earnestnwhen gold had slipped to $1,410/oz. “The selloffnwas likely technical in nature,” he said, noting thatninvestors who bought gold last month at $1,400oz wanted to snap up their gains. However, he predictednthat the precious metal was unlikely to fallnbelow $1,400/oz at least for the rest of March.n“There’s been no resolve” of the political tumultnin the Middle East, particularly Libya,” he noted,nand also, “inflationary upward pressure remains anconcern,” given rising oil prices. Aside from the crisisnin the Middle East, a host of other unresolvednglobal issues simmer on, he added, including thenUS fiscal crisis and the European sovereign debtnproblems, which he said should continue luringninvestors to safe-haven gold.