While news that the euro zone had reached a deal on the next installment of aid for Greece initially pressured the US dollar and lifted gold and the euro a tad, its impact wore off relatively quickly and markets opened with a different tenor this morning.
While the exchange traded funds for gold and copper fell Wednesday due to investors expressing disappointment at the modest response of the Federal Reserve to declining economic growth, it was silver that was off the most.
Precious metals, crude oil, equity markets, and certain currencies spent the first trading days of this week basically treading water and fast-forwarding to the last three days of sessions; days from which market participants are hoping to be able to extract some benefit.
Another day of sideways-to-lower price action was beginning to take shape in certain precious metals as banks continued to siphon US dollars ($50 billion since last week and counting) from the ECB amid the on-going liquidity crunch in Europe.
Precious metals headed lower (all but platinum) as the US dollar picked up a tad of energy and the euro ran into a wall of overhead resistance amid the still (!) on-going crisis. Spot gold opened $10.20 lower at $1,754 per ounce.
Spot gold prices fell solidly under the $1,800 pivot point this morning and remained very near the $1,780 level for most of the remainder of the trading day. The decline came after of coordinated action from the ECB and other central banks.
Gold prices dipped once again overnight after trying to mount an assault on the mid-$1,800s on Tuesday. The yellow metal was not alone in losing value; silver and the noble metals plus a host of other commodities from crude oil to copper also sold off.
Precious metals dealings once again opened mixed in New York, with gold and silver still free from the effects of any profit-taking gravitational pull and with the noble metals exhibiting the opposite condition.