Most members of the precious metals team started the midweek session a tad higher this morning; however their initial gains did not endure and the complex soon slipped into the red (except in the case of palladium, as of this writing).
The new trading week commenced with - what else - additional gains in already overheated metals markets. Falling oil and rising dollar values had little impact on opening bids in gold and the rest of the precious metals' complex.
The hitherto ballooning enthusiasm in the commodity space deflated a tad late yesterday and this morning following a modicum of back-pedaling on the part of Mr. Bernanke in front of the Senate Banking Committee.
Gold prices opened at the $1,587.00 mark in New York this morning, gunning for a ninth consecutive session of gains on the back of the global debt maelstrom that appears to be sweeping up everything and everyone on its destructive path.
Metals markets opened firm and continued firmer on Wednesday as reverberations of the European crisis coupled with the parsing of the Fed's meeting minutes prompted additional buying by momentum players as well as the retail investor segment.
Spot gold dealings started the Tuesday New York session off on the downside, with the yellow metal losing $7.00 and being quoted at $1,547.50 per ounce. The US dollar remained above the 76.00 mark on the trade-weighted index.
By the 11:00 o'clock hour conditions in gold turned far less enthusiastic than they had been this early morning, and the yellow metal was showing a loss of $1 per ounce ($1,542). Meanwhile, silver fell hard and fast as well.
New York spot precious metals dealings opened a bit on the mixed side this morning. Gold bullion showed a $3.20 per ounce loss on the open and it was quoted at $1,526.20 while silver gained 15 cents to open at $36.05 the ounce.
More gains in the metals ought not to be ruled out as the European debt turmoil still presents chain-reaction-like potential dangers and investors might wish to remain on the safe side. As such, we could see a second day of tandem dollar-gold gains.