expects a continuation higher Friday or next week.By Matt Whittaker
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Gold futures declined as participants booked profits amid the metal's recent strong performance, but the commodity still managed to close above $1,000 an ounce.
December gold fell $6.70 to settle at $1,013.50 an ounce on the Comex division of the New York Mercantile Exchange.
"That's definitely some profit-taking," said Sterling Smith, market analyst with Country Hedging.
Some participants are getting jitters with gold at these higher levels, he said. If the metal starts to sell off, first support is around $1,006, but that level may not prove strong, Smith said. After that, there's not much to keep the metal in four-digit territory, he said.
"I think there are some frayed nerves," he said.
A higher dollar also pressured the metal, said George Gero, vice president with RBC Capital Markets Global Futures.
Gold is often bought and sold inversely with the greenback since the metal is considered a dollar hedge and, more broadly, an alternative currency. Shortly after gold closed, the ICE Futures U.S. dollar index was up 0.081 cent.
"It's just natural to see people take money off the table," said Larry Young, senior trader with Infinity Futures.
But he noted that December gold surpassed the previous session's high overnight. "We're not done yet," Young said.
He expects a continuation higher Friday or next week.
Silver futures faltered with gold as participants booked profits. Comex December silver lost 16.5 cents to settle at $17.265 an ounce.
"It's just in tow with the gold," Smith said.
Platinum-group metals ended mixed as profit-taking in gold dragged down platinum while palladium managed gains. Nymex October platinum fell $8.60 to settle at $1,341.50 an ounce, while December palladium on the exchange gained $5.25 to settle at $305.75 an ounce.
"With gold slipping...it just pulled (platinum) down as well," a trader said.
Palladium's gains were a bit mysterious, with the trader calling them "a head scratcher." He says perhaps some technical buying was behind the move.
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,018.50; previous PM $1,015.75
Spot gold at 1:38 p.m. EDT: $1,011.80, down $2.40; Range: $1,010.77-$1,024.00
Dec gold $1,013.50, down $6.70; Range $1,010.60-$1,025.80
Dec silver $17.265, down 16.5 cents; Range $17.210-$17.690
Oct platinum $1,341.50, down $8.60; Range $1,336.10-$1,356.30
Dec palladium $305.75, up $5.25; Range $300.00-$308.50
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com