AZK/MNG/CMM.V/IPT.V/MUG.V
Gold price slides as market sees downside
March 10, 2006
Tokyo - Gold fell in Asian trade on Friday as charts some traders use to predict prices indicate that further declines may be likely.
Gold for immediate delivery fell for the first month in four in February and has dropped 2.8 percent this month so far.
It may decline further from a 25-year high of $575.35 an ounce, said investor Puru Saxena.
"A sharp correction is likely over the next few days" as
the bullion's gains in the past few months were overdone, Saxena, chief executive officer of Puru Saxena, said from Hong Kong in a televised interview.
Gold for immediate delivery fell as much as 95 cents, or
0.2 percent, to $545.10 an ounce. The metal traded at $545.27 at 2.37pm Singapore time. The metal rose 22 percent between November and January.
"The gold price will drop down to about $480 to $485
before this correction is over," Saxena said.
"That would be a fantastic buying opportunity for the long-term investor" as the metal's bull run may continue for another decade, he said.
Gold futures for April delivery fell as much as $1.90, or 0.4 percent, to $545.10 an ounce on the Comex division of the New York Mercantile Exchange. They traded at $546.60 at 2.36pm Singapore time.
A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.
On the Tokyo Commodity Exchange, gold for delivery in
February 2007 rose ¥2, or 0.1 percent, to settle at ¥2 099 a gram, or ¥65 279 ($551) an ounce. - Bloomberg
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