NEW YORK: Gold prices retreated to $1,428 per ounce after hitting an all time high of $1448 last week as safe haven demand weakened on speculation that the Federal Reserve will tighten US monetary policy, curbing demand for the precious metals as alternative investments. Copper prices tumbled on news that China monetary tightening will reduce imports and demand for the commodity used in electrical, telecommunication and construction sector. Gold plunged on speculation that the Federal Reserve will tighten US monetary policy, curbing demand for the precious metals as alternative investments. Gold futures for June delivery dropped $11 Friday, or 0.8 percent, to settle at $1,428.90 an ounce on the Comex in New York. Among other metals, Silver futures for May delivery fell 15.6 cents, or 0.4 percent, to $37.732 an ounce. Palladium futures for June delivery rose $7.15, or 0.9 percent, to $775.05 an ounce, the fourth straight gain. Platinum futures for July delivery declined $6.30, or 0.4 percent, to $ 1,776.90 an ounce. In Indian market, MCX April gold futures opened the week at 20806 and down 0.70 percent to 20660 after hitting a high of 20807 while June contract dropped 0.58 percent to 20945 per 10 grams. MCX Silver May opened this week at Rs.55416 and ended higher by 0.84 percent up at Rs55884. Copper plunged this week on concern that China will step up monetary tightening after data showed that manufacturing accelerated for the first time in four months. Copper's losses at the start of the new quarter bucked the firmer tone in US equities, which raced to their highest level since June 2008 after data showed a second straight month of solid gains in jobs and a slight drop in unemployment, which stood at two-year lows. The three-month-delivery copper on the London Metal Exchange fell as much as 0.4 percent Friday to $9,389 a metric ton, and traded at $9,404 in Singapore. All six LME base metals fell, led by a 0.9 percent drop in nickel. Copper futures on the Comex in New York dropped 0.7 percent to $4.2775 a pound, while the metal for June delivery on the Shanghai Futures Exchange fell 0.2 percent to 70,500 yuan ($10,770) a ton. Nickel in London dropped 1.3 percent to $25,750 per ton, zinc lost 1 percent to $2,338.25 a ton and aluminum declined 0.6 percent to $2,631 a ton. Tin fell 1.9 percent to $31,210 a ton and lead lost 0.4 percent to $2,685 a ton. In India at MCX, copper April contract fell from Rs.438.50 to Rs420 per kg, a decline of 4.42 percent after hitting a low of 416.90 whereas the May contract ended down by 3.83 percent to Rs425.05. Natural gas continued its uptrend this week as traders bought back previously sold contracts at the end of the first quarter. US gas production advanced 1.1 percent in December from November, according to the Energy Department's monthly EIA-914 report. Output in the lower 48 states increased for a second month, increasing 0.2 percent to 66.76 billion cubic feet a day from a revised 66.6 billion. Crude oil regained this week on the back of US added more jobs than forecast, signaling increased demand, and as fighting intensified in Libya. Crude oil for May delivery rose $1.22 Friday to $107.94 a barrel on the New York Mercantile Exchange. Oil is up 2.4 percent for the week and 27 percent from a year ago. Brent oil for May settlement climbed $1.34, or 1.1 percent, to end the session at $118.70 a barrel on the London-based ICE Futures Europe exchange. The Organization of Petroleum Exporting Countries' crude output dropped in March. China's crude oil consumption will rise 14 percent by 2015 compared with last year as additional refining capacity makes it more dependent on imports, according to PetroChina Co. At MCX, Crude oil April contract up from Rs.4731 to Rs.4825 higher by 1.98 percent after hitting a high of 4829 whereas the May contract gained by 1.81 per cent to Rs.4876.
