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.
Gold and other precious metals prices opened sharply lower this morning as a duo of news from China and from Europe rattled the commodities' space and sent speculators scurrying towards the "exit" doors in large numbers.
Spot dealings in New York saw an opening gain of $5.80 in the yellow metal and traders quoted the bid-side in gold at $1,685 the ounce. Bullion narrowed those opening gains within the first sixty minutes of trading action however.
Gold's opening gains were trimmed to about only $3 per ounce (and silver's to a dime), despite a further dip in the greenback on the index. Buoyed by a better outlook among currency and equity specs, the commodities' complex also received a lift.
As a result of China data and euro-zone turmoil, the overnight action in precious metals turned towards moderate selling despite some decent regional physical offtake coming from Asia. Spot gold lost $7.10 to start the day off at the $1,667.00 bid level.
Gold opened with a gain of $25 at $1,688 the ounce and silver started the midweek session off with a three-quarter dollar rise to the $32.89 level. But the big gainer on the day was platinum, which showed a $30 lift to $1,544.
Half of Monday's gains in gold and all of the advances in silver were given up in New York this morning by the two precious metals as the US dollar stopped declining and as crude oil fell back about half a dollar.
Precious metals markets opened "in the green" but gold parted company with the rest of the complex and headed a tad lower. Spot New York dealings opened with a loss of $4.60 for the yellow metal; bid-side was indicated at $1,638.00 the ounce.
The carnage in certain commodities continued on Tuesday and some of the price-damaging selling sprees extended into this morning as well. A slightly lower dollar and a 3% recovery in crude oil did not lend assistance to the yellow metal this time.