U.S. gold futures fell modestly Thursday and pulled back from their 2010 highs as less safe-haven buying emerged and some profits were being taken. While gold had been climbing the last several days despite dollar strength, silver, platinum and palladium have been falling. On Thursday, the metals switched rolls. Silver was the biggest gainer in the bunch, rising 44.2 cents, or 2.4%.
"People will continue to look for a good alternative to these fiat currencies, and gold is it," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, said via BusinessWeek. "We’ll still see the euro roll over again, but today people are taking some profits off the table."
In New York precious metals prices, June gold declined to $1,168.80 an ounce for a loss of $3.00, or 0.3%. The yellow metal ranged from $1,162.20 to $1,171.80. May silver ended at $18.549 an ounce. July platinum gained closed to $1,733.70 an ounce, rising $20.10, or 1.2%. June palladium advanced $7.10, or 1.3%, to $549.00 an ounce.
"Heading into the weekend, don’t be surprised to see fresh buying interest in gold, or at least see any downside price pressure in gold limited by notions of some fresh developments regarding EU countries’ sovereign debt before trading resumes next Monday," wrote Jim Wyckoff of Kitco News.
In London bullion prices, the afternoon gold fix was $1,166.75 an ounce for a gain of $5.75, or 0.5%. Silver ended up 19 cents, or 1.1%, to $18.150 an ounce. Platinum settled down to $1,711.00 an ounce, losing $3.00, or 0.2%. Palladium was $542.00 an ounce for a loss of $1.00, or 0.2%.
"You’re seeing some of that flight to safety and safe-haven buying coming off a bit," Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago, said on MarketWatch. "But it really is a small move considering the movements we had."
Gold historically move opposite to the U.S. dollar and in the same direction as oil, although that has not been the case recently with European debt issues in play. New York crude oil for June delivery gained $1.95, or 23.%, to $85.17 a barrel.