Spot gold lost $5 on the open to start the new week with a bid at $1,637 the ounce. Silver fell 20 cents to the $30.14 mark per ounce. Platinum climbed $5 to $1,528 while palladium rose $2 to $651 the ounce.
Spot gold prices touched a new three-week high against the US dollar in London on Tuesday morning, trading above $1,638 per ounce as world stock markets rose with industrial commodities. Silver bullion leapt above $30 per ounce.
Gold prices are marginally higher after the 3% gain seen last week. Gold tentative gains come despite the dollar gaining strength due to the European crisis, where a poor or failed debt auction this week could see a bout of renewed risk aversion.
Call it profit-taking, call it book-squaring, call it news-based trading, the result is the same: volatility remains an integral part of the metals' markets and to a degree that is not comforting to traditional buyers of same.
Stick with names that have resources in the ground they are growing. They should react best and see less tax loss selling. Earlier stage companies will find loss selling harder to avoid unless they are delivering good news and promising more to come.
Gold's Friday gains evaporated fairly promptly in the mid-morning as the metal hit a shoal of unanticipated selling and ran aground; all the way down to the $1,775 area. Traders blamed the slide on the resurgence of the "sell everything" syndrome.
Most members of the precious metals team started the midweek session a tad higher this morning; however their initial gains did not endure and the complex soon slipped into the red (except in the case of palladium, as of this writing).
You'd think politicians would thank even worms and vultures of the financial markets, for driving the single currency lower by selling it for dollars, sterling, yen and Swiss francs. After all, they've spent years complaining the euro is too strong.
This crisis presents a singular opportunity for alert readers to make large profits in a rapidly growing sector catalyzed by volatile world developments. Under our very noses we are witnessing the possible loss of our oil supplies.