Spot gold prices again drifted lower in London after rising in Asia Friday morning, heading for the biggest monthly drop against the dollar since the Lehman crash of October 2008 but finishing the third quarter of 2011 more than 13% higher.
A further decline in crude oil prices conspired to drag most of the commodities' complex to lover value ground as the new trading week began. Precious metals lost chart altitude levels as well, despite a minor loss recorded in the US dollar index.
How are interest rates currently affecting commodity prices? How do the financial troubles of European countries such as Greece and Portugal affect gold prices? And what is the outlook for oil prices for the next two to five years?
Last month Goldman Sachs became pessimistic in regard to commodity prices, and advised investors to take profits. However, yesterday the bank revised its outlook for some commodities upwards - notably crude oil, zinc and copper.
Well, the Fed "giveth" less than some had hoped for, but it also "giveth" a roughly two-month reprieve to the dollar-carry/commodity-betting crowd. The parade on "Easy Street" thus continues amid noisy revelry.
The flames of volatility turned into a veritable firestorm of price gains and declines on Monday as the new week got underway and Tuesday's opening action showed no indications that the hectic pace of change was about to abate.
Silver remained the lone standout in pre-opening arket action and was still rising on inertia from last week's speculation-fueled nearly 9% gain. Monday's precious metals trading opened with losses in three out of the four principal metals we track.
As a result of a very good jobs report, gold and silver prices immediately headed somewhat lower today (at last check, gold was nearly $13 into negative territory, while silver fell 49 cents), while the greenback showed a modest improvement.
The midweek trading session in precious metals had something to offer to everyone, but most of all to the many platinum fans out there. Spot gold prices oscillated between gains and losses and silver rose in value.