Gold futures fell on Friday, extending their dive from the previous session on speculation the precious-metals rally will end after prices failed to match crude, oil and euro prices this week which hit new records.
Gold for June delivery fell $4.80 to end at $927 an ounce on the New York Mercantile Exchange. The precious metal posted a gain of $13.80 this week after closing at $913.20 an ounce last week Friday.
Jon Nadler, senior analyst at Kitco Bullion Dealers, said today's losses were because of book-squaring before the gathering of Group of Seven finance ministers and central bankers which began in Washington.
The meeting is seen as a possible risk event, thus mild liquidation is being seen, Nadler said.
Before today, gold had made 37 percent in gains this past year as a housing slump, credit turmoil and six interest-rate cuts sent the dollar to an all-time low against the euro.
Despite breaking above the short-term down trend line, the metal continues to meet chart resistance, suggesting gold may look to spend some more time consolidating above $900 an ounce, said James Moore, an analyst at TheBullionDesk.com, in a research note.
However, the mid to longer-term outlook remains bullish as investors look to offset inflation and recession pressures, while placing their money in stronger yielding safe-haven assets, Moore said.
Crude oil rose to the highest ever on April 9, while the euro hit a record yesterday. Gold is down 10 percent from a record $1,033.90 an ounce reached on March 17, while the euro and oil set all-time highs this week. Gold is still up 1.5 percent this week.
Silver futures for May delivery fell 35.3 cents, or 2 percent, to $17.69 an ounce, capping a 0.4 percent decline for the week. The metal is still up 19 percent this year.
Also on the Nymex, May silver futures dipped 35 cents to end at $17.69 an ounce and July platinum lost $16.90 to $2,028.10 an ounce. June palladium gained $6.60 to $475.35 an ounce while May copper futures edged slightly higher with 2 cents to end at $3.94 a pound.