Wednesday's FOMC announcement-induced price gains in gold evaporated overnight as the yellow metal not only did not manage to overcome overhead resistance levels but fell victim to selling in the wake of rising risk appetite for other assets.
The second central bank currency market intervention in as many months sent the US dollar soaring and gold reeling overnight as market players rushed for various entry and exit doors to take advantage of the overt move.
Precious metals prices opened mixed on Tuesday with gold and silver retreating a bit while platinum and palladium staged advances. Spot gold was quoted at $1,791 per ounce, down about $5 while silver fell 15 cents to the $34.bid level per ounce.
Gold continued to exhibit some of the same nervousness that has characterized the sessions of the past week. Bullion is hardly responding to the on-going instability in Egypt, and -despite further slippage in the US dollar - is tilting to lower levels.