Could the New Year bring profit-taking in the metals markets?
*Wall Street Journal, by Tatyana Shumsky, January 4, 2011
”Gold retreated below the $1,400 mark Tuesday as investors locked in last year’s gains despite a weaker dollar.
The most actively traded contract, for February delivery, was recently down 2.5%, or $35.50, at $1,387.40 per troy ounce on the Comex division of the New York Mercantile Exchange.
The thinly-traded January delivery contract was down 2.5%, or $35.60, at $1,387.00 per troy ounce.
Gold prices slumped as traders continued to cash in profits Tuesday. The yellow metal had rallied 29.7% over 2010, but slipped in the first two days of 2011 as investors moved to realize those gains.
‘With everyone so bullish coming into the end of the year, the market is ripe for some pulling back,’ said Stephen Platt, analyst with Archer Financial Services. ‘You could be poised for a good correction, maybe down to $1,350.’ ”
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