Gold futures modestly declined Thursday

Gold futures modestly declined Thursday, as some traders took profits following gains in the previous session and digested the concerted move by world central banks to prop up global liquidity.

Gold for February delivery , the most active contract, lost $10.50, or 0.6%, to end at $1,739.80 an ounce on the Comex division of the New York Mercantile Exchange.

“We’re in no-man’s land,” said Matt Zeman, head trader and strategist at Kingsview Financial in Chicago. “People are still digesting the rally” on Wednesday and weighing how gold will be impacted by the central banks’s action, he added.

Losses were tempered by a lower U.S. dollar. Gold also spent a brief time in the black following news a gauge of U.S. manufacturing activity rose in November, expanding for the 28th month.

Other metals ended lower, with silver outdoing gold and copper in the red after a last-hour attempt at gains.

Copper spent most of the day lower as manufacturing news from China disappointed.

March silver declined 5 cents, or 0.1%, to end at $32.76 an ounce after trading mostly higher through the session.

March copper  lost 4 cents, or 1.2%, to settle at $3.53 a pound.

Two gauges of manufacturing activity in China showed cooling, with a state-sponsored purchasing managers’ index falling to 49 in November from 50.4 in the previous month.

A survey by HSBC had the PMI drop to 47.7 in November, from 51 in October. The HSBC survey came in at its weakest since March 2009.

U.S. manufacturing, however, gave reason for hope.

The Institute for Supply Management reported November manufacturing rising to 52.7, from 50.8 in October. Analysts polled by MarketWatch had expected a reading of 52.

Platinum and palladium diverged, with palladium posting gains. January platinum was off $3.60, or 0.2%, to $1,557.20 an ounce. March palladium gained $17.60, or 2.9%, to $630.20 an ounce.

Gold and most commodities rallied on Wednesday following news central banks around the world, including the U.S. Federal Reserve and the European Central Bank, had moved to lower the pricing on U.S. dollar liquidity swap arrangements.

On Thursday, however, market sentiment was decidedly more guarded. Helping raw materials, the U.S. dollar slipped compared to major rivals.

A lower dollar helps commodities as it makes them cheaper for holders of other currencies. The dollar index , which compares the U.S. unit to a basket of six currencies, traded at 78.249 from 78.345 in North American trade late Wednesday.

In Europe, ECB president Mario Draghi gave a pessimistic view of the economy.

Closer to home, first-time claims for unemployment benefits rose last week to 402,000, a sign the U.S. jobs market is far from healed. Economists polled by MarketWatch had expected initial claims to total 393,000.  - MarketWatch

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Posted by admin on Dec 2 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry