Gold prices finished the U.S. day session with sharp losses Tuesday, but did close up from their daily lows. The market was pressured by profit taking from the shorter-term traders and by sell stop orders being triggered in the futures market to accelerate the price downdraft.
Gold prices rose on Monday as geopolitical tensions in Ukraine escalated and bolstered the yellow metal's safe-haven appeal, offsetting the otherwise bearish effects of solid U.S. retail sales.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,327.50 a troy ounce during U.S. trading, up 0.64%, up from a session low of $1,319.00 and off a high of $1,331.30.
The June contract settled down 0.11% at $1,319.00 on Friday.
Bearish speculators misjudged gold bets again as the release of Federal Reserve minutes extended this month’s rally in bullion.
Money managers cut their net-long position to the lowest since February in the week ended April 8. The minutes of the Fed’s March meeting the next day played down forecasts for higher rates, and gold had its biggest weekly gain in a month.