This morning, the midweek session in New York opened lower as gold notched a fourth day of losses, and traded near $1,640 per ounce. Anxieties connected to China’s economy flared in the wake of reports that home prices in that country fell again.
Precious metals prices headed lower this morning as the final trading session of the week got underway in New York. Yesterday’s “Fedspectations” turned down a notch as market participants had somewhat bigger news "fish" to fry this morning.
A third day of losses was in store for gold as deepening "euroxiety" took hold of markets and wiped away remaining traces of last week's "europhoria." The yellow metal opened the midweek session with a drop of $9 and was quoted at $1,772 the ounce.
Gold spot dealings opened at the $1,704 mark on the bid-side and follow-through buying by momentum players was expected to become manifest. Silver traded seven pennies higher and was quoted at $33.34 the ounce.
As a result of China data and euro-zone turmoil, the overnight action in precious metals turned towards moderate selling despite some decent regional physical offtake coming from Asia. Spot gold lost $7.10 to start the day off at the $1,667.00 bid level.
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.
Gold's early gains (it rose to highs near the $1,380.00 level on the offer side of spot) narrowed considerably as the day wore on, and they did so despite not much of a recovery in the US dollar on the trade-weighted index.