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Gold suffers biggest monthly decline of the year—Prices down five sessions in a row, settle at a four month low

Gold prices on Friday logged their lowest settlement in four months and suffered from their worst monthly decline this year as recent gains in equities lured investors away from the precious metal.

August gold  GCQ4 +0.06%  fell $11.10, or 0.9%, to settle at $1,246 an ounce on the Comex division of the New York Mercantile Exchange, marking a fifth straight session loss.

Tracking the most-active contracts, gold prices saw their lowest settlement since Jan. 31, according to FactSet data. They lost 3.5% for the week and 3.9% for the month — their biggest weekly and monthly declines of this year. “Gold has been trading in a compressing range since March with prices being supported by geopolitics, while the broad strength in stocks has kept pressure on precious metals,” said Tyler Richey, an analyst for the 7:00’s Report, which offers daily markets commentary. “This week, it was a combination of the Ukrainian elections going smoothly as well as the break to new all-time highs in the S&P [500] that sent gold futures plummeting to lows not seen since early February,” he said. “Going forward, inflation remains the key catalyst and although there are signs that inflation is bottoming (not only domestically but globally), it’s not going to be enough to initiate a gold rally just yet.” (more…)

Gold suffers biggest monthly decline of the year

Gold futures fell on Friday to tally a loss of 3.9% for the month, its biggest monthly decline of the year. Prices, which posted declines for five sessions in a row, also settled at their lowest level four months as recent gains in equities dulled safe-haven demand for the metal. August gold  GCQ4 +0.05%   fell $11.10, or 0.9%, for the session to settle at $1,246 an ounce on the Comex division of the New York Mercantile Exchange. Tracking the most-active contracts, prices fell 3.5% for the week and lost 3.9% for the month.

Gold futures tally four-session decline of 3%—Metal hit by technical headwinds; Citigroup says little upside catalyst ahead

Gold futures suffer their fourth straight losing session on Thursday, as mounting technical warnings signs, mostly upbeat U.S. economic data and an increasing appetite for risk around the world continued to dog prices.

Gold for August delivery  GCQ4 +0.06%  fell $2.60, or 0.2%, to settle at $1,257.10 an ounce on the Comex division of the New York Mercantile Exchange. Prices have now tallied a four-session loss of roughly 3% and based on the most-active contracts, settled at their lowest since Feb. 5. (more…)

Gold futures suffer fourth straight session loss

Gold futures fell on Thursday for a fourth straight session, pressured by technical warnings signs, mostly upbeat U.S. economic data and a rising appetite for risk around the world. August gold  GCQ4 +0.06%   fell $2.60, or 0.2%, to settle at $1,257.10 an ounce on Comex. Prices had already lost 2.8% over the past three trading sessions, and based on the most-active contracts, that was the lowest close since Feb. 5, FactSet data show. Still, “the heaviest of the selling pressure appears to be behind [prices] for now, with support coming in near $1,250,” said Colin Cieszynski, chief market strategist at CMC Markets.

Citi: Few upside catalysts for gold; miners burning cash

Gold prices will increase slightly in the near term, given ongoing tensions between Russia and Ukraine, but outside of that, there’s limited upside catalysts for prices, said Citigroup analysts in its Global Gold Book that published Thursday. Citi said gold prices should average $1,337 an ounce in the first half of 2014, rising to $1,365 an ounce in 2015. The analysts were bearish on gold companies, saying while companies have taken evasive action to make ends meet in the near term, 75% of the industry still burns cash. “We conclude that odds are firmly against a gold company delivering long-term shareholder value,” said lead analyst Johann Steyn. Goldcorp Inc.  CA:G +1.04%  , Barrick Gold Corp.  CA:ABX +0.79%  , and Newmont Mining Corp.  NEM +0.04%   have better odds than peers, but much depends on how disciplined management is over capital allocation. Companies least likely to deliver shareholder value and rated sell by Citi are: Sibanye Gold Ltd. ZA:SGL +0.23%  , African Barrick Gold PLC  UK:ABG -1.66%  , Polymetal International PLC  UK:POLY -1.80%  , Gold Fields Ltd. ZA:GFI -0.76%  , Newcrest Mining Ltd.  AU:NCM -0.92%  and Harmony Gold Mining Co. ZA:HAR +0.69%.

Gold down a third session, lowest since early Feb.

Gold futures on Wednesday fell for a third straight session, with analysts attributing losses to a drop below key technical levels. Naeem Aslam, chief market analyst at AvaTrade, said prices have the ability to fall to the $1,180 level and an “upward gold move may not be in the cards anytime soon.” August gold  GCQ4 +0.09%  fell $6, or 0.5%, to settle at $1,259.70 an ounce on Comex. Based on the most-active contracts, that was the lowest close since Feb. 6, FactSet data show.

Gold falls for third day, sticking to February lows—Analysts attribute decline to drop below key technical levels

Gold’s drop to levels not seen since early February still wasn’t enough to lure buyers back, as prices settled lower on Wednesday for a third session in a row.

Gold for June delivery  GCM4 +0.10%  lost $6.20, or 0.5%, to settle at $1,259.30 an ounce on the Comex division of the New York Mercantile Exchange, finding no rebound from its 2% retreat a day earlier. August gold  GCQ4 +0.07%  , also among the most-active contracts, fell $6, or 0.5%, to end at $1,259.70.

Prices, tracking the most-active contracts, settled at their lowest level since Feb. 6. July silver  SIN4 +0.30%   shed nearly a penny to end at $19.06 an ounce.

“The technicals are trumping the fundamentals for now,” said Mark O’Byrne, a director at Dublin-based GoldCore. Technically, in the very short term, “gold is vulnerable to a further fall to the double bottom” between $1,180 and $1,200 an ounce. “Gold frequently sees weakness and bottoms on options expiration and given the still decent fundamentals including geopolitical risk, this could be the case again,” he said. Options on June gold expired on Tuesday.

Gold on Tuesday was hammered as traders seemed to react to perceived stability in Ukraine in the wake of last weekend’s decisive election result. The fact that investors are moving back into global equities lately isn’t helping, and there are also some technical headwinds in play. (more…)

The case for buying gold is perfectly reasonable—Opinion: The yellow metal may rebound after almost three years of declines

After peaking at around $1,900 an ounce in 2011, the precious metal lost about 35% of its value until bottoming around $1,200 at the start of 2014.

Since January, gold has crept up steadily and is sitting on a 6% gain, double the return of the S&P 500 Index in the same period. So what’s going on with gold? Is this just a dead-cat bounce, or the beginning of a rally that could bring real profits to traders?

I think it may be the latter — because there are signs of a bottom in sentiment, because of global uncertainty fueling a “risk premium,” and because of a lack of enthusiasm regarding the alternatives. (more…)

Gold futures mark lowest close in 3.5 months—Analysts see technical levels broken; ‘bottom has fallen out’

Gold futures on Tuesday settled at their lowest level in about three-and-a-half months as Ukraine’s election results, technical selling and equity gains combined to pull prices down by 2%.

Gold for June delivery  GCM4 +0.10%  fell $26.20, or 2%, to settle at $1,265.50 an ounce on the Comex division of the New York Mercantile Exchange. Tracking the most-active contracts, prices marked their lowest close since Feb. 7, according to FactSet data. The session’s point and percentage losses were also the largest since mid-April. (more…)

Gold futures close at a more than three-month low

Gold futures on Tuesday marked their lowest settlement in about three-and-a-half months, pressured by strength in U.S. equities as prices dropped below key technical levels. June gold  GCM4 +0.10%  fell $26.20, or 2%, to settle at $1,265.50 an ounce on Comex. That was the lowest close for a most-active contract since Feb. 7, FactSet data show. “With many global equity indices pulling higher, participants appear to be at a loss for any motivation toward buying gold,” said Jonathan Citrin, founder and executive chairman of CitrinGroup.

Gold futures tumble 1% on Ukraine, technical levels

Gold futures accelerated their decline in early U.S. trading Tuesday, falling over 1%, as the most active contract broke through a level some analysts said was a key point of resistance. Gold for June delivery  GCN4 +0.01%  fell $14.40, or 1.1%, to $1,277.30 an ounce. Losses deepened after 8 a.m., and the contract hit its lows of the day after the 8:30 a.m. release of U.S. durable goods orders, which made a surprise gain. Peter Hug, global trading director of Kitco Metals Inc., said the outcome of the Ukraine elections and a stronger U.S. dollar aided by the durable goods orders, supported stocks and hampered demand for the metal. “The wedge of $1,287 -$1,305 gave way overnight as sellers reemerged after the election in the Ukraine,” he wrote in morning comments. The SPDR Gold Trust  GLD +0.02%  was off 1.3% premarket.