Gold futures closed near $900 an ounce Friday, marking their highest level in more than three weeks, as crude oil’s rally to a fresh record high near $128 a barrel boosted the precious metal’s appeal as an inflation hedge.

“Ever since gold became free trading in the early 70s, we’ve been telling you, ‘Buy it as an inflation hedge,’” said Peter Grandich, editor of the Grandich Letter. “Everywhere one looks they see prices and costs rising,” he said in emailed comments. And “as the inflation concerns grow, so should the price of gold.”

Gold for June delivery climbed to an intraday high of $904.50 on the New York Mercantile Exchange. It closed with a gain of $19.90, or 2.3%, at $899.90, a level it hasn’t finished at since April 23.

“Safe-haven buying is likely to have reemerged on both the surging oil price but also on the appalling consumer sentiment numbers which showed consumer confidence falling to their lowest levels since 1980 — 28 years ago,” said Mark O’Byrne, director at Gold & Silver Investments Ltd., in emailed comments.

The dollar extended losses Friday, despite better-than-expected housing data, after a weak consumer sentiment index reading kept alive doubts about the strength of the U.S. economy.

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By Polya Lesova, MarketWatch

Metals futures in broad retreat, paced by platinum

NEW YORK (MarketWatch) — Gold futures dropped 2% on Tuesday, extending their sharp losses from the previous session, as strength in the U.S. dollar weighed on the precious metal.

Gold for June delivery tumbled $19.70, or 2%, to $901.80 an ounce on the New York Mercantile Exchange. Other metals futures were also sharply lower, with platinum particularly weak.

Gold’s suffering a “breakdown” and has confirmed a series of lower lows and reinforced the bearish trend,” said analysts at Action Economics.
“Flight-to-quality trading may still provide some support on dips, but the technical picture coupled with expectations of a slowdown in global growth should lower physical demand ahead,” they said.

Culminating a tumultuous quarter, the benchmark gold contract lost $15, or 1.6%, to end Monday’s trading back at $921.50 an ounce.
For March as a whole, gold futures lost $50.60 — a drop of 5.2%. But for the first quarter, the precious metal still gained $86.60 an ounce, a 10.3% increase.
“Given gold’s recent movements, the yellow metal will remain vulnerable to selling pressure in the coming sessions,” said James Moore, analyst at TheBullionDesk.com.

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NEW YORK — Gold futures traded steady near $985 an ounce Tuesday following strong gains in the previous session, while platinum futures surged to a record high.

Gold for April delivery gained $1.80 at $986 an ounce on the New York Mercantile Exchange. On Monday, gold hit a record of $992 an ounce.

Early Tuesday, April platinum futures vaulted to a record high of $2,308.80 an ounce, surpassing the record set in the previous session. The platinum contract was last up $28.40 at $2,270.0 an ounce.

“Gold has remained underpinned this morning and given the ongoing concerns towards the U.S. economy and the pressure this is putting on the greenback, it seem inevitable gold will challenge the $1,000-an-ounce level in the very near future as investors diversify towards stronger-yielding assets,” said James Moore, an analyst at TheBullionDesk.com, in a research note.

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