Gold down despite weaker U.S. dollar, disruptions in supply

Gold bars

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as a result of profit-taking, despite a weaker U.S. dollar and concerns over physical availability of the precious metal.

The most active gold contract for April delivery fell 26.2 U.S. dollars, or 1.59 percent, to close at 1,625 dollars per ounce.

After the price of gold has risen steadily over the past week due to safe haven demand, some investors with long positions have closed their positions to take profits.

Downbeat U.S. economic data also failed to support gold, as the final U.S. consumer sentiment index from the University of Michigan fell to 89.1 in March from a preliminary 95.9 and 101.0 in the prior month.

There have been reports of several gold mining and other gold processing factories having their operations disrupted by COVID-19, diminishing the physical supply of the precious metal and offering an upward trend for gold prices.

The U.S. Dollar Index fell by 0.63 points, or 0.63 percent to a 98.73 level as of 17:50 GMT, capping gold’s fall somewhat.

Gold found further support as the Dow Jones Industrial Average fell by 550.24 points, or 2.44 percent to 22,001.93 as of 17:55 GMT. The fall in the Dow Jones was not in line with expectations for the week, so traders may have seen it as a good opportunity to buy back into equities.

Silver for May delivery fell 14.2 cents, or 0.97 percent, to close at 14.534 dollars per ounce. Platinum for April delivery rose 3.2 dollars or 0.43 percent, to close at 740.3 dollars per ounce. Enditem

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