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Gold futures retreat from 3-week high on profit-taking

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Forex Pros - Gold futures erased gains on Thursday, tracking sharp losses in silver prices, as investors cashed out of the market to lock in gains from a four-day rally that took prices to a three-week high.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,519.75 a troy ounce during late U.S. morning trade, slumping 0.48%.

Meanwhile, silver for July delivery tumbled 2.2% to trade at USD37.01 a troy ounce. Silver prices rose as much as 2.5% to hit USD38.83 an ounce during the Asian session.

Earlier in the day, gold prices rose to USD1,532.05 an ounce, the highest price since May 4 as the safe haven appeal of the precious metal was boosted amid lingering worries about Greece's sovereign debt.

However, the rally prompted some investors to sell their position on profit taking and lock in gains.

"We have seen some precious metals come under pressure as early profit-taking emerges in European markets ahead of the weekend and the end of the month," Standard Bank said in a report earlier in the day.

Losses were limited after the U.S. Commerce Department said its second estimate of gross domestic product growth was unrevised at annual rate of 1.8% in the three-months to March, below economists' expectations for a 2.1% increase.

Separately, the Labor Department said the number of individuals filing for initial jobless benefits in the week ending May 21 unexpectedly rose by 10K to a seasonally adjusted 424K, from an upwardly revised 414K in the preceding week. Analysts had expected initial jobless claims to fall to 400K.

The downbeat data diminished expectations for an imminent tightening in U.S. monetary policy, boosting the appeal of gold and other precious metals.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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