Amid further signs that not all is well in the world of commodities, values of various components that make up the complex continued to slide after having attempted a half-hearted recovery over the early part of the week.
Commodities in general, and the precious metals we normally track stabilized overnight and showed some gains as the new trading week got underway. Crude oil led the pack, notching a near-3% gain early on Monday.
The grimmest commodity market closing tally in almost two years was recorded yesterday afternoon in New York. Awash in a sea of red, the price boards showed a $43.40 drop in gold, a 12% collapse in silver, $54 off platinum and $34 off palladium.
Gold prices broke under the psychologically pivotal $1,500 mark in the early hours whilst silver shed yet another near-5% to trade as low as the $37.28 level and it recorded a 35% haircut since last Friday's high at the spot offer of $50.35 the ounce.
The midweek trading session in New York opened with losses in all metals but gold this morning as the white and noble metals sank and the yellow one attempted to regain some lost footing in the wake of a further easing in the US dollar.
The focus in the marketplace remains almost entirely concentrated on silver and the silver bubble's developing story. The CME hiked the margin requirements for silver speculation for the third time in a week.
Monday's trading in New York opened under selling pressure for all of metals in the complex. Gold fell $13.40 per ounce to start at $1,552.30 on the bid-side. Silver opened with a $2.94 per ounce loss and was quoted at $45 in fairly hectic early action.
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.
Lingering selling pressure persisted in silver overnight and the white metal sank very near to the $45 per ounce bid quote as the US dollar rebounded from fresh lows ahead of today's Fed meeting and Bernanke press conference.