The flames of volatility turned into a veritable firestorm of price gains and declines on Monday as the new week got underway and Tuesday's opening action showed no indications that the hectic pace of change was about to abate.
Spot gold dealings opened with a $3.50 per ounce gain in New York and the yellow metal was quoted at the $1,505.10 level on the bid-side. Overnight highs near $1,510.00 were recorded amid dollar-oriented selling overseas.
'Profit-taking' was only manifest until the S&P rating agency slammed the US rating outlook with the "negative" label. The AAA rating remains in place, but a shift from 'stable' to 'negative' outlook propeled gold to near a $1,500 price level.
Precious metals trading opened on a slightly weaker note this morning as minor gains in the US dollar and a small decline in crude oil and copper dampened buying enthusiasm somewhat more. The spot gold price fell to near the $1,455.00 level.
Precious metals trading opened on a firmer footing this morning following overnight dips to near recently formed price support areas. The market's tenor was however on the nervous side as players eyed lingering profit-takers still in action.
Silver remained the lone standout in pre-opening arket action and was still rising on inertia from last week's speculation-fueled nearly 9% gain. Monday's precious metals trading opened with losses in three out of the four principal metals we track.