Gold closes slightly lower, rebounds as equities plunge

barrick gold

Gold futures on the COMEX division of the New York Mercantile Exchange settled slightly lower on Thursday but rebounded during the ensuing electronic trading as stock market fell sharply.

The most active gold contract for April delivery lost 0.6 U.S. dollar, or 0.04 percent, to close at 1,642.5 dollars per ounce.

Gold futures gave up earlier gains on Thursday to finish lower for a third straight session. However, when the volatile stock market fell further in the afternoon, safe-haven gold climbed again into positive territory.

If equities post significant losses, the precious metal usually goes up, as investors have to look for a safe haven.

Additional support came from the U.S. dollar. The dollar index, a measure of the dollar against a basket of other major currencies, fell well below 99 on Thursday.

When the dollar goes down, dollar-priced gold futures will become less expensive and thus more attractive to investors holding other currencies.

As for other precious metals, silver for May delivery was down 17.9 cents, or 1 percent, to close at 17.735 dollars per ounce. Platinum for April delivery fell 9.3 dollars, or 1.02 percent, to settle at 905.5 dollars per ounce. Enditem

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