The largest week-on-week loss in gold since May and perhaps since early 2009 was shaping up on the charts as of the overnight hours as the yellow metal headed to near the $1,760 area on the back of further signs of euro and European stability.
Spot gold prices fell solidly under the $1,800 pivot point this morning and remained very near the $1,780 level for most of the remainder of the trading day. The decline came after of coordinated action from the ECB and other central banks.
Gold prices dipped once again overnight after trying to mount an assault on the mid-$1,800s on Tuesday. The yellow metal was not alone in losing value; silver and the noble metals plus a host of other commodities from crude oil to copper also sold off.
Weakness in the euro and in the equity markets translated into same in gold, as sellers were once again seen trying to plug their newly incurred portfolio gaps with proceeds from the liquidation of the most...liquid of assets.
The new trading week got off to a fairly rocky start in the precious metals' complex this morning as slumping equity markets and a stronger US dollar sapped more value and bullish enthusiasm from the sector.
Volatility continued in unabated fashion in the precious metals markets overnight as gold and silver each gave up more than 2% in value on the heels of a firming US dollar. Thursday's gains in gold largely evaporated.
Gold regained half of Wednesday's $60 loss overnight as overseas traders tentatively entered the market in the hope that short-term gains were in the cards. Spot New York dealings opened with a rise of $32 in gold and a 70-cent gain in silver.
Bungee-jumping without a helmet held nothing over being a market participant last night in terms of the thrill of rebounds and freefalls. Gold ran across a $64 price spectrum giving almost everyone their money's worth in a few intense hours.
September's first trading session got off to a mixed start in the precious metals' complex as traders were on hold for the release of US economic data and as they were digesting similar bits of information already in the pipeline from overseas.
Spot gold started the midweek trading session with a drop of $12.40 per ounce; a decline that soon turned into a $25 give-back of Tuesday's $50 gains. Gold's volatility continues to be an unnerving factor for small retail investors.