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.
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.
Last week's "winning" mood among equity and commodity bulls, which was stoked by the statements coming after the EU summit, sustained serious damage over the past 24 hours. Players have begun to recognize that words do not equate action.
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 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.
Commodity prices rose this morning along with the levels of optimism surrounding the euro-debt summit and along with the region's common currency. Gold and the euro have been BFFs of late, so the yellow metal also gained in value.
Following a string of losses that has extended over four trading sessions, gold prices tried to stabilize in the $1,630s overnight as a modicum of optimism over Europe's debt crisis resolution emboldened a few buyers to pick up some bullion.
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.