Reuters – U.S. precious metals futures plunged on Monday as funds and speculators bailed out of the market across the board in a massive profit-taking spree that came after prices hit long-term highslast week, traders said.<\/p>\n
Gold, after spiking to a 26-year high on Friday, fell 3.8 percent in the aggressive sell-off by investors which was also fueled by a higher dollar and weaker oil prices.<\/p>\n
Other metals posted nearly double-digit percentage losses by one stage in the morning but later trimmed losses. Silver settled down 6.3 percent, while platinum lost 2.6 percent and palladium 5.9 percent by the close.<\/p>\n
“The correction \u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u00a6 is simply a reflection of profit-taking by funds, a bit of a stronger dollar, though the fundamentals of it have not changed, and perhaps a return to a more seasonally normal and more placid gold market, post-Indian-wedding season,” said Jon Nadler, analyst with bullion dealer Kitco.<\/p>\n
June gold futures <GCM6> tumbled $26.80 on the New York Mercantile Exchange’s COMEX division to close at $685 an ounce, after trading from $721.50 to $679.<\/p>\n
On Friday, futures shot to their highest since January 1980, at $732, thanks to a recent trend of buying as a hedge against global tensions, soaring crude oil and a weak dollar.<\/p>\n