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Gold Futures Fall Below $900

Written By Luke Burgess

Posted March 10, 2009

Gold futures for April 2009 delivery fell more than 2% below $900 an ounce today as the equity markets rose, denting interest in the yellow metal as a safe haven.

Forward month gold futures fell to a low of $891.10 an ounce on the COMEX division of the New York Mercantile Exchange as the Dow Jones rallied almost 5% to over 6,800 after Citigroup Inc. [NYSE: C] announced the bank has been operating at a profit through the first two months of the year.

CEO Vikram Pandit reported that the first-quarter performance has been the bank’s best since 2007. Citi’s projected earnings before taxes and one-time charges would be about $8.3 billion for the full quarter.

Gold prices have been unable to hold a position over $1,000 an ounce as governments, central banks, and institutions continue to buy the U.S. dollar as a hedge against economic pains. However, the long-term outlook for the fiat U.S. dollar is bearish due to imminent inflationary pressures. As a result, gold prices are expected to continue rising.

– luke