The metals markets opened to the downside for the midweek session this morning. A 0.28% advance in the US dollar and a 0.36% slip in crude oil contributed to early selling pressure. Spot gold prices dipped under Tuesday’s lows and touched $1,588 per ounce.
Gold gradually fell during trading in Asia and this weakness has continued in European trading where gold looks set to test the $1,650/oz. level or $1,646/oz., the price low after the $1.24 billion sell trade on Monday.
With the sharp decline in precious metals Wednesday, many are wondering when the bleeding will stop. As Gold and silver need a catalyst to challenge the highs made earlier this year and a catalyst for metals is the tool of choice at central banks.
The pressure is on for the world's mining community to ramp-up production to meet burgeoning worldwide silver demand, mostly from investors but also from the increasingly silver-reliant industrial sector.