GOLD futures on the COMEX Division of the New York Mercantile Exchange dropped for the second day on Friday as the improved economic perspective as well as firm dollar reduced gold’s safe-haven appeal and the consumer sentiment index rose. Silver and platinum went down, too.
Earlier on Friday, Citigroup posted a first-quarter loss 966 million dollars which is narrower than analysts’ expectations, joining the group including J.P. Morgan Chase, Goldman Sachs and Wells Fargo that all impressed investors over this week with earnings reports better than Wall Street analysts anticipated.
Confidence among US consumers improved in April for a second month with the Reuters/University of Michigan preliminary index of consumer sentiment rose to 61.9 from 57.3 in March.
These better-than-expected performances further convinced investors that the US economy is going out of the bottom, reducing gold’s appeal as hedge assets to prevent economic risk.
Some participants are moving out of the precious metal and into commodities like grains and softs, said analysts.
A strong greenback put more pressure on gold with the dollar index climbing 0.8 point by the end of gold’s floor trading time.
May silver finished at 11.79 dollars per ounce, down 46.5 cents. July platinum dropped 4.20 dollars to 1,211.60 dollars per ounce. pna-xinhua