by Ewa Manthey
Gold prices fell on Monday morning in London on profit-taking after China returned from its week-long holiday and global equities rebounded.
- Gold had surged to a one year-high of $1,263.30 on Thursday last week on strong risk-off sentiment while global equity and commodity markets plunged on concerns that the world economy could be falling into recession.
- The spot gold price was last at $1,208.80/1,209.10 per ounce, down $28.80 on Friday’s close. Trade has ranged from $1,207.80 to $1,234.80 so far.
- “Gold’s rapid ascent to the $1,260 highs warrants some caution in the near term. The market may have done too much, too soon. However, that many market participants have missed the move thus far suggests that there may be appetite to buy dips. Lingering macro uncertainty is also likely to make shorts hesitant. We therefore expect any retracement to be relatively shallow and brief,” UBS analyst Joni Teves said.
- Silver was last lower at $15.28/15.30 per ounce, platinum at $934/939 was down $16 and palladium fell $1.50 to $516/521.
- The US is closed for the Presidents Day holiday today.
(Editing by Mark Shaw)
