Whereas gold had opened in New York right around the pivotal $1,700 mark, Labor Department data sent the yellow metal some $20-25 lower, and to a low of $1,675 per ounce, within the first hour after the figures were released.
Gold prices meandered on either side of the "unchanged" marker this morning and orbited around the $1,745 area as the US dollar did not appear to pierce the 78.50 level on the trade-weighted index following yesterday’s euro-centric optimism-induced sell-off.
Gold prices fell back to under the $1,600 pivot point once again as US dollar strength combined with renewed jitters about Europe overcame the effects of geopolitical tensions arising out of the Iranian situation and sellers pressured commodities lower.
The bottom line is stock technicals today are bullish. Despite incredible Europe-driven anxiety plaguing the markets in recent months, the flagship S&P 500 is still carving higher lows and higher highs.
New York precious metals action opened with minor losses in gold and with mild advances in other metals, except for palladium, which continued it stunning two-day climb by adding 4% more to values in the spot price.
Two hours into the Thursday session the selling intensified and gold fell some $10 under the $1,750 support level with a loss of nearly $30 per ounce. Silver dropped by 70 cents to once again draw close to the $33 mark.
Metals prices received further lift this morning as turmoil in Europe diverted funds in their direction but the complex was still competing with what is apparently shaping up as a stock market rally of notable proportions on both sides of the Atlantic.
The second central bank currency market intervention in as many months sent the US dollar soaring and gold reeling overnight as market players rushed for various entry and exit doors to take advantage of the overt move.
Gold prices turned significantly weaker overnight and touched lows near $1,605 as waves of fund-based selling pummeled bids in the yellow metal. From a technical perspective, the precious metal might now be aiming downward.