Gold futures in New York sank to their lowest levels since early February on Friday, hit by fund selling as the dollar shot to seven-month highs vs. the euro, which made metals less alluring to investors overseas. By 10:50 am EDT, June delivery gold on the New York Mercantile Exchange's COMEX division was down $3.30 at $417.50 an ounce, dealing from $421.10 to $416.80 - its weakest price since February 10. "The funds are going short and liquidating long positions because the dollar is very strong," said Leonard Kaplan, president of Prospector Asset Management.
"We broke below some major support at $418.50 and I think we're going lower." The dollar rallied to fresh highs for this year against major European currencies, with its resilience in the face of potentially damaging developments this week finally triggering a technical breakout.
Spot gold was at three-month lows as well, fetching $417.00/417.70 an ounce, below Thursday's New York close at $420.30/1.00. London's afternoon fix on Friday was $418.
July silver plunged 15.0 cents to $6.99 an ounce, moving between $7.16 and $6.965 - its lowest since Tuesday. Spot reached $6.96/99 vs. $7.09/12 previously. The fix was $7.10.
Key support was sighted at $6.80 and $6.50, with resistance at $7.20.
On the board at NYMEX, July platinum fell $5.40 to $862 an ounce but still held atop key support at $857. Spot platinum traded to $860/865. June palladium rose 85 cents to $189.75 an ounce. Spot edged to $186/190.
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