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  • Gold Sinks as Safe-Haven Shine Dims

    Published on September 11, 2010

    Gold futures on the COMEX Division of the New York Mercantile Exchange edged lower on Friday and capped its first weekly decline since late July, pressured by the ongoing decline in flight-to-quality mentality. Silver and platinum both softened.

    The most active gold contract for December delivery trimmed 4.4 dollars, or 0.4 percent, to finish at 1,246.5 dollars per ounce.

    The U.S. Commerce Department said on Friday that the U.S. wholesale inventories jumped 1.3 percent in July, the largest monthly gain in two years, which has surpassed economists’ estimates of a 0.4-percent increase, indicating that economic growth in the third quarter might be stronger than previously expected.

    Meanwhile, Japan’s economy slowed less than initially estimated in the second quarter, which also helped investors to hold on to their optimism over global economic recovery, and pushed up U.S. equities and other risky assets as investors are more willing to take the risk.

    Gold retreated for the third consecutive session on Friday, after closing at a record high on Tuesday, as a flow of upbeat U.S. jobs and trade data released this week fueled investors’ appetite for risky assets and eroded gold’s appeal as safe-haven. Gold lost 0.4 percent this week, and ended a five-week winning streak.

    December silver trimmed 1 cent, or 0.1 percent, to 19.845 dollars per ounce. October platinum lost 10.8 dollars, or 0.7 percent, to 1,542.5 dollars per ounce.