Gold falls as stocks stage early rally
NEW YORK — Gold prices inched back below $900 an ounce on Thursday, falling as the dollar advanced against other major currencies and stocks staged an early rally.
Other commodities, like oil and grain futures, finished higher.
Gold prices have been trapped in a tight range of between $870 and $915 in the past few weeks as investors absorb conflicting signals on the economy. There has been evidence that the economy’s slide is slowing but at the same time many companies remain under stress.
Investors have become more confident in recent weeks, buying up stocks on the hopes that the economy is on the mend. Investors often flee to gold in times of economic turmoil, so gold has suffered as risk appetite increases on Wall Street.
Stocks staged an early rally Thursday — fueled by a better-than-expected report on the labor market — which put pressure on gold prices.
An announcement later in the day that troubled automaker Chrysler LLC will be go through bankruptcy was not a surprise to investors, but it sapped some of the market’s optimism and sent stocks slightly lower.
The Dow Jones industrials are up 25 percent from their 12-year low in early March, but stocks have wavered this week amid ongoing concerns about the economy.
“(Gold) is range bound because it seems that the stock market and the financials are just as range bound,” said George Gero, vice president at RBC Capital Markets Global Futures in New York. “You have a couple of down days and a couple of up days and the result is that investors are confused. And where there is confusion, people tend to sell rather than buy.”
Gold for June delivery lost $9.30 to settle at $891.20 an ounce on the New York Mercantile Exchange.
July silver dropped 45 cents to $12.3250 an ounce, while July copper futures rose 4.25 cents to $2.0475 a pound.
Oil prices wavered on the Nymex amid the mixed economic data.
Light, sweet crude for June delivery ticked up 15 cents to settle at $51.12 a barrel.
Gasoline for May delivery rose 2.51 cents to $1.4735 a gallon, while heating oil slipped less than a penny to $1.3252 a gallon.
Grain prices rose on the Chicago Board of Trade.
July wheat futures added 4.5 cents to $5.3650 a bushel, while corn for July delivery inched up 2.25 cents to $4.0350 a bushel.
July soybeans jumped 30 cents to $10.55 a bushel.
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